Key Takeaways
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You may be able to enjoy low introductory interest rates and bonus rewards offers with a new credit card.
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You can earn more rewards with a second credit card, like cash back rewards on eligible purchases.
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By getting another credit card, you can increase your available credit, which can help improve your credit score if you keep your balances low.
Chances are that you know someone with a wallet full of credit cards. If you’ve been getting by with just one, you may wonder if there’s a good reason to get a new card.
While multiple credit cards may not be right for everyone, you may consider some of the benefits of having multiple accounts.
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With no harm to your credit score1
You may be able to take advantage of introductory offers for new cardmembers
Some credit card companies offer low to 0% introductory interest rates on purchases and balance transfers for a limited time. These kinds of introductory rates can help you manage a large purchase or pay down credit card debt quicker using a balance transfer—transferring the credit card balance from a higher-interest card to a new credit card with a lower interest rate. If you pay off your purchases and the balance transfer amount during the promotional period, you may save on interest charges.
Before signing up for a second credit card to utilize a balance transfer offer, pay close attention to:
- When the special intro rate ends.
- If there are any balance transfer fees.
- The interest rate for regular purchases (which may be different from the interest on the balance transfer).
Multiple cards may help you earn more rewards
Another reason to get an additional credit card is to take advantage of its perks. Maybe when you applied for your first credit card, you only qualified for a basic, no-frills type of account that offered few extra benefits. It could be that now you qualify for a card with a higher limit and various rewards. Before applying for a new card, consider what type of rewards credit card would benefit you most, such as a cash back rewards card, a card that offers more rewards for specific purchases like gas, or a travel rewards card that offers miles for every eligible purchase.
Did you know?
By getting a new credit card, you may be able to earn bonus rewards, such as extra cash back rewards for the first several months you have your card. Discover automatically matches the cash back you’ve earned on your credit card at the end of your first year.2
You may build a stronger credit history with multiple cards
If you’re looking for ways to build a good credit history, getting an additional credit card may help. Opening a new card after graduation and using it in place of your student card can help with your credit ratio. For example, if you pay your balance off in full and on time every month, a second card could help you improve your payment history and increase your available credit by lowering your credit utilization ratio—your total balance compared to your total credit limit across all your credit accounts—two major factors that go into your credit history and credit score. You can monitor your progress by regularly checking your credit report.
You can establish relationships with other card issuers
There comes a time in many borrowers’ lives when their current credit card companies may no longer meet all their financial needs. If you want to expand your borrowing options beyond your current credit card issuer, applying for a new credit card with a new credit card issuer can help. In time, a relationship with a second card issuer may provide access to new or better financial tools your original credit card company doesn’t offer.
You can have a backup credit card
Have you or someone you know had a credit card lost, stolen, or even broken in half? If you’re in this situation and only have one credit card, you may have to make all your purchases with cash or a debit card until the problem gets resolved. A second credit card can be a convenient backup if your other credit card is unavailable or unusable.
How many Discover® Cards can you have?
As a Discover® Cardmember, you can have two different cards. And Discover credit cards let you earn rewards on every purchase, from cash back rewards to miles for travel and more.
If you’re considering a second credit card, you can fill out a pre-approval form to determine which Discover credit card you may qualify for.
Disadvantages of having multiple credit cards
According to Experian®, the average person in the U.S. has about 4 credit cards each. Even so, having fewer cards may be better for some people because using multiple credit cards may have certain disadvantages.
Harder to manage spending
With multiple cards in play, you may find it challenging to keep track of your total spending and your credit usage. You may even be tempted to overspend, especially if you have a large amount of credit available. Even with a higher credit limit, overspending could hurt your credit utilization ratio.
It's also important to note the interest rate on each new credit card. If you carry multiple balances, each one's interest rate may cause your credit card debt to grow rapidly.
Different cards may come with different monthly payment dates, potentially making it more difficult to submit payments on time. Overdue payments can appear on your credit report and hurt your credit score. A low credit score can impact your ability to open a new credit or loan account.
Multiple cards may mean multiple annual fees
You may sign up for cards during an introductory period to take advantage of an annual fee waiver. Once that introductory period ends, however, you may be left with multiple cards that carry annual fees.
If you want to use two or more credit cards, you might consider options without annual fees. Discover, for example, has no annual fee on any card. So, you can have more money to spend where it matters.
Best ways to manage multiple credit cards
It’s important to know how to use multiple credit cards effectively and manage them responsibly to best meet your financial goals and build a strong credit history.
Use all of your cards regularly
Some credit card issuers will close your credit card account if you don’t use a card for a certain period of time. This will lower your total available credit, which may hurt your credit score. So, remember to use all of your cards regularly and keep them active.
Keep track of multiple cards and make payments on time by setting up payment notifications instead of relying on a paper credit card bill. Most credit card issuers will allow you to enable payment alerts or set up automatic payments so that you don’t miss due dates.
Depending on your credit card issuer, you may be able to change the date your monthly payment is due. This can help you schedule all of your payments for the same day to help you remember and budget properly.
You may also be able to set the due date to align with when you get paid from work. This may help you ensure you always have money to cover your bills when needed so you don't harm your payment history and credit score.
Avoid canceling multiple cards at once
Canceling many cards at the same time may impact your credit score, especially if you carry a balance on your remaining cards. That’s because closing an account will lower your total available credit, which can raise your credit utilization rate.
Canceling cards may also impact your length of credit history, another factor in determining credit scores. If you need to close a credit account, it may be best to close one that is new compared to closing older accounts.
Check which spending categories earn a higher rate of rewards for each card. Then make sure to put each purchase on the rewards card that offers the best and most relevant rewards. If one card offers rewards for travel purchases, for example, make sure to use it when booking your plane tickets and hotel reservations.
How many credit cards should you have?
No specific number of credit cards is best. It all depends on the individual’s spending habits and personal finance needs.
When managed properly, multiple cards may yield more advantages than disadvantages. You’ll have to determine how many cards you can manage to ensure you maintain good credit and if a mix of credit cards will benefit your long-term financial goals.
The best credit cards for each person may differ. For example, maybe you already have a bank credit card, but want to earn cash back on gas. In that case, you might benefit from adding an additional credit card from a credit card company that offers those types of rewards.
Whatever your reasons for wanting multiple cards, remember to research and compare the credit cards you’re considering to find the best credit card for your current financial situation and lifestyle.
