How Many Credit Cards Do You Need?

A few years ago there was a story circulating about a guy in California, Walter Cavanagh, who had close to 1,497 valid credit cards. His total credit line was $1.7 million. And, guess what? His credit score was nearly perfect. His secret to credit success was that he paid off his credit card balances each month.

Mr. Cavanagh didn’t actually use all of those cards. He started collecting them because of a bet he had with a friend. Mr. Cavanagh ended up in the "Guinness Book of World Records" where he became known as "Mr. Plastic Fantastic." Unless you are trying to beat his record, there would obviously be no reason to collect so many cards.

The experts differ somewhat regarding how many credit "vehicles" are held by the average consumer. Some say most Americans have between 5 - 10. Others say that 13 is a more realistic number. But the real question is, "How many credit cards should the average person carry?"

Again, the experts have varied opinions on this issue. However, it appears that most think you should have a minimum of 2 cards and a maximum of 6. The bottom line is that there is no one correct answer. The number of cards that is right for you is a very personal decision. There are so many factors to consider. And those factors are largely dependent on each person’s habits, lifestyle, and economic circumstances. There is an excellent article here that provides further insight into this issue.