How many credits cards is too many?
There is no right number of credit cards to own, and owning multiple cards gives you access to different rewards programs that various cards offer. Owning five cards would give you a bigger total line of credit and lower your credit utilization ratio. If you can manage five cards at once, it's not too many for you.
There's no such thing as “too many” hard credit inquiries, but multiple applications for new credit accounts within a short time frame could point to a risky borrower. Rate shopping for a particular loan, however, may be treated as a single inquiry and have minimal impact on your creditworthiness.
Since hard inquiries affect your credit score and what is found may even affect approval, you might be wondering: How many inquiries is too many? The answer differs from lender to lender, but most consider six total inquiries on a report at one time to be too many to gain approval for an additional credit card or loan.
There's no definitive answer to this, but 10 credit cards may often be too overwhelming for the average person to maintain. Having two to three credit cards is much more manageable and can go a long way toward keeping your credit utilization low.
So, while there is no absolute number that is considered too many, it's best to only apply for and carry the cards that you need and can justify using based on your credit score, ability to pay balances, and rewards aspirations.
There is no right number of credit cards — it depends on how many you can manage. Having multiple credit cards helps reduce your utilization rate and provides lenders with more information to better gauge your creditworthiness.
If you apply for one new credit card in six month intervals, you should never have more than four hard inquiries at a time. Sometimes, even four hard inquiries is too many. For instance, recently I applied for an Amex card and was denied -- even though I had three hard inquiries and an 811 credit score.
How Do Hard Inquiries Affect Your Credit Score? Hard inquiries can have a negative impact on your credit score, in the short term at least. While a hard inquiry will stay on your credit report for two years, it will usually only impact your credit for up to a year, and usually by less than five points.
“Any hard inquiries that occur within 14 days of each other are considered one inquiry for scoring purposes,” Ulzheimer says. “This includes credit card, mortgage, auto, student loan and any other hard inquiries.”
If you find an unauthorized or inaccurate hard inquiry, you can file a dispute letter and request that the bureau remove it from your report. The consumer credit bureaus must investigate dispute requests unless they determine your dispute is frivolous.
How many hard searches is too much?
In general, six or more hard inquiries are often seen as too many. Based on the data, this number corresponds to being eight times more likely than average to declare bankruptcy. This heightened credit risk can damage a person's credit options and lower one's credit score.
- Obtain free copies of your credit report. ...
- Flag any inaccurate hard inquiries. ...
- Contact the original lender. ...
- Start an official dispute. ...
- Include all essential information. ...
- Submit your dispute. ...
- Wait for a verdict.
It may seem counterintuitive, but closing a credit card can hurt your credit score in the short term. You may be less likely to spend if the card is gone, but without that information on your credit report, the lender has also lost insight that could help them gauge your reliability as a borrower.
Having any credit card debt can be stressful, but $10,000 in credit card debt is a different level of stress. The average credit card interest rate is over 20%, so interest charges alone will take up a large chunk of your payments. On $10,000 in balances, you could end up paying over $2,000 per year in interest.
$5,000 in credit card debt can be quite costly in the long run. That's especially the case if you only make minimum payments each month. However, you don't have to accept decades of credit card debt.
Credit scoring formulas don't punish you for having too many credit accounts, but you can have too few. Credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time.
There's no such thing as a bad number of credit cards to have, but having more cards than you can successfully manage may do more harm than good. On the positive side, having different cards can prevent you from overspending on a single card—and help you save money, earn rewards, and lower your credit utilization.
Yes, assuming you use your cards responsibly. If you do, then having additional cards will generate consistent spending information for the credit bureaus each month, increasing your total credit limit and keeping your credit utilization rate low.
Bank of America's 3/12 or 7/12 rule
If you do NOT have a deposit account with Bank of America, your credit card application will be denied if you have opened three new cards in the past 12 months, based on what's visible on your credit report.
As far as how many is “too many,” you'll want to limit the number of credit cards you have to how many you can feasibly keep track of and afford to pay off each month. Credit cards are only a valuable asset as long as you can make on-time payments and avoid carrying a balance from month to month.
Is it bad to have too many credit cards with zero balance?
However, multiple accounts may be difficult to track, resulting in missed payments that lower your credit score. You must decide what you can manage and what will make you appear most desirable. Having too many cards with a zero balance will not improve your credit score. In fact, it can actually hurt it.
However, multiple hard inquiries can deplete your score by as much as 10 points each time they happen. People with six or more recent hard inquiries are eight times as likely to file for bankruptcy than those with none. That's way more inquiries than most of us need to find a good deal on a car loan or credit card.
Credit card applications can be denied for many reasons: an insufficient credit history, a low credit score, or too many card accounts opened too quickly, to name a few.
Does Capital One make a hard inquiry? Capital One will more than likely make a hard inquiry on at least one of your credit reports. To get a good idea of whether or not you should risk the hard inquiry, try getting preapproved for a card. A preapproval will not usually make a hard inquiry against your credit.
- Dispute with the Credit Bureau: Initiate a dispute online or via mail. ...
- Contact the Creditor: Engage with the lender or creditor responsible for the inquiry. ...
- Safeguard Your Credit:
References
- https://thepointsguy.com/credit-cards/pay-with-credit-card-if-costs-more/
- https://www.pointhacks.com.au/credit-cards/american-express-cards/
- https://passkit.com/blog/how-do-loyalty-programs-make-money/
- https://www.chase.com/personal/credit-cards/education/credit-score/how-many-hard-credit-inquires-are-too-many
- https://www.paycec.com/faq/how-much-are-1-million-amex-points-worth
- https://wallethub.com/answers/rp/how-much-are-1000-reward-points-worth-1000300-2140728866/
- https://money.usnews.com/credit-cards/articles/how-much-available-credit-should-i-have
- https://www.equifax.com/personal/education/credit-cards/articles/-/learn/how-many-credit-cards-should-i-have/
- https://www.fool.com/the-ascent/credit-cards/articles/have-10k-in-credit-card-debt-heres-how-to-pay-it-off/
- https://wallethub.com/answers/rp/how-many-miles-for-a-free-flight-2140686451/
- https://www.bankrate.com/finance/credit-cards/weighing-a-cash-back-card-vs-a-points-and-miles-card/
- https://www.forbes.com/advisor/credit-cards/how-cash-back-works/
- https://www.aura.com/learn/how-to-remove-hard-inquiries
- https://wallethub.com/answers/cc/american-express-50000-points-1000292-2140753810/
- https://www.nerdwallet.com/article/finance/how-is-credit-utilization-ratio-calculated
- https://www.experian.com/blogs/ask-experian/what-is-a-hard-inquiry/
- https://www.aura.com/learn/is-it-bad-to-have-too-many-credit-cards
- https://wallethub.com/answers/cc/when-to-redeem-credit-card-rewards-2140701552/
- https://study.com/academy/lesson/whats-20-percent-of-1000-how-to-steps.html
- https://www.koho.ca/learn/zero-balance-on-credit-card/
- https://www.experian.com/blogs/ask-experian/credit-education/score-basics/600-credit-score/
- https://www.forbes.com/advisor/credit-cards/what-is-a-rewards-credit-card/
- https://www.bankrate.com/finance/credit-cards/when-to-redeem-points-an-miles-instead-of-paying-cash/
- https://www.chase.com/personal/credit-cards/education/rewards-benefits/do-credit-card-points-expire
- https://www.usatoday.com/money/blueprint/credit-cards/credit-card-points-vs-cash-back/
- https://www.forbes.com/advisor/credit-cards/travel-rewards/choice-privileges-rewards/
- https://support.southwest.com/helpcenter/s/article/rapid-rewards-rules-and-regulations
- https://www.bankrate.com/finance/credit-cards/are-rewards-credit-cards-worth-it/
- https://www.lendingtree.com/credit-cards/articles/how-much-are-airline-miles-worth/
- https://wallethub.com/answers/cc/how-much-should-i-use-on-a-500-credit-card-1000154-2140845659/
- https://www.nerdwallet.com/article/travel/do-marriott-points-expire
- https://www.experian.com/blogs/ask-experian/what-is-statement-credit/
- https://wallethub.com/answers/cc/how-many-credit-card-points-equal-a-dollar-2140806346/
- https://studenthelp.secure.griffith.edu.au/app/answers/detail/a_id/338/~/what-is-a-credit-point%3F
- https://www.forbes.com/advisor/credit-cards/capital-one-credit-bureau/
- https://wallethub.com/answers/cc/do-rewards-cards-affect-your-credit-score-2140845862/
- https://www.chase.com/personal/credit-cards/education/basics/what-is-a-good-credit-limit
- https://www.bankrate.com/finance/credit-cards/credit-card-rewards-count-taxable-income/
- https://wallethub.com/answers/cc/is-a-1500-credit-limit-good-1000310-2140812132/
- https://www.bankrate.com/finance/credit-cards/how-do-credit-card-points-work/
- https://www.lendingtree.com/credit-cards/articles/what-are-credit-card-points-what-are-they-worth/
- https://www.cnbc.com/select/difference-between-loan-and-card-hard-inquiries/
- https://www.americanexpress.com/en-au/rewards/membership-rewards/about-program
- https://money.usnews.com/credit-cards/articles/how-much-of-my-credit-limit-should-i-use
- https://wallethub.com/answers/cc/how-much-of-a-2000-credit-card-should-you-use-1000154-2140845662/
- https://www.chase.com/personal/credit-cards/education/basics/what-happens-if-you-go-over-your-credit-limit
- https://www.bankrate.com/finance/credit-cards/wells-fargo-go-far-rewards-guide/
- https://www.americanexpress.com/en-us/credit-cards/credit-intel/credit-inquiries/
- https://www.cuemath.com/questions/what-is-30-percent-of-500/
- https://www.fool.com/the-ascent/credit-cards/articles/heres-what-happens-to-your-credit-score-when-you-apply-for-too-many-cards/
- https://www.bankrate.com/finance/credit-cards/how-to-redeem-credit-card-rewards/
- https://www.bankrate.com/finance/credit-cards/who-pays-for-credit-card-rewards/
- https://www.investopedia.com/financial-edge/0711/how-many-credit-cards-should-you-have.aspx
- https://merchantmachine.co.uk/visa-mastercard-amex/
- https://www.transunion.com/blog/credit-advice/would-canceling-credit-card-improve-my-credit-score
- https://www.lonelyplanet.com/articles/do-credit-card-rewards-points-miles-expire
- https://www.americanexpress.com/en-gb/business/trends-and-insights/articles/what-do-300000-american-express-points-get-you/
- https://www.nerdwallet.com/article/finance/30-percent-ideal-credit-utilization-ratio-rule
- https://thepointsguy.com/news/redeem-44-million-amex-points/
- https://www.bankrate.com/finance/credit-cards/should-you-cancel-an-unused-credit-card/
- https://awardwallet.com/blog/bank-america-credit-card-application-rules/
- https://www.cbsnews.com/news/how-long-will-it-take-to-pay-off-5000-in-credit-card-debt/
- https://www.moneygeek.com/credit-cards/travel/advice/capital-one-miles-value/
- https://www.cnbc.com/select/credit-card-deadbeat/
- https://www.lendingtree.com/credit-cards/articles/do-credit-card-rewards-points-and-miles-expire/
- https://www.incharge.org/debt-relief/credit-counseling/credit-score-and-credit-report/will-multiple-credit-inquiries-hurt-my-score/
- https://www.latimes.com/compare-deals/credit-cards/chase/sapphire-preferred-card-review
- https://www.americanexpress.com/en-us/credit-cards/credit-intel/credit-card-reconsideration/
- https://www.capitalone.com/learn-grow/money-management/credit-utilization-and-credit-score/
- https://money.com/can-you-pay-a-mortgage-with-a-credit-card/
- https://homework.study.com/explanation/what-s-30-percent-of-2000.html
- https://www.hilton.com/en/hilton-honors/support-faq/
- https://www.hdfcbank.com/personal/resources/learning-centre/pay/know-how-to-redeem-debit-card-and-credit-card-points
- https://www.bankrate.com/finance/credit-cards/how-many-credit-cards-is-too-many/
- https://pyramidcreditrepair.com/how-to-remove-hard-inquiries-from-your-credit-report-in-15-minutes/
- https://www.bankrate.com/finance/credit-cards/keep-miles-from-expiring/
- https://www.cnn.com/cnn-underscored/money/does-closing-credit-card-hurt-credit-score
- https://www.bankrate.com/finance/credit-cards/credit-utilization-ratio/
- https://www.chase.com/personal/credit-cards/education/basics/how-many-credit-cards-is-too-many
- https://www.bankbazaar.com/credit-card-reward-points.html
- https://www.southwest.com/rapid-rewards/points/buy-gift-transfer/
- https://www.chase.com/personal/credit-cards/education/rewards-benefits/pay-credit-card-with-reward-points
- https://www.quora.com/Can-I-pay-my-credit-card-bill-using-reward-points
- https://www.bankrate.com/finance/credit-cards/case-against-credit-card-rewards/
- https://www.nerdwallet.com/reviews/credit-cards/capital-one-quicksilver
- https://www.nerdwallet.com/article/travel/when-do-your-frequent-flyer-miles-expire
- https://www.cnbc.com/select/pay-credit-card-in-full-or-carry-balance/
- https://www.fool.com/the-ascent/credit-cards/rewards-worth-it-or-not/
- https://www.ck12.org/flexi/cbse-math/percentage/what-is-3-of-1000/
- https://www.nerdwallet.com/article/credit-cards/where-does-money-for-credit-card-rewards-come-from
- https://www.bankrate.com/finance/credit-cards/do-american-express-membership-rewards-points-expire/
- https://www.bankrate.com/finance/credit-cards/credit-card-tip/
- https://www.quora.com/Credit-card-limit-is-300-So-does-that-mean-I-can-only-utilize-210-and-keep-a-remaining-balance-of-90
- https://www.discover.com/credit-cards/card-smarts/what-happens-never-use-credit-card/
- https://www.credit.com/blog/how-many-credit-cards-should-you-have/
- https://money.usnews.com/credit-cards/articles/when-should-you-redeem-cash-back
- https://www.nerdwallet.com/article/travel/do-hyatt-points-expire
- https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/
- https://www.nerdwallet.com/article/travel/hotel-points-expire
- https://wallethub.com/edu/cc/how-many-credit-cards-should-i-have/25900
- https://www.self.inc/blog/how-many-hard-inquiries-is-too-many
- https://www.forbes.com/advisor/credit-cards/carrying-credit-card-balance-hurt-credit-score/
- https://www.asksebby.com/building-credit/850-credit-score
- https://www.creditkarma.com/advice/i/how-to-remove-hard-inquiries
- https://www.cnbc.com/select/what-is-a-good-credit-utilization-ratio/
- https://www.forbes.com/sites/clairetsosie/2020/02/25/3x-points-on-all-purchases-one-credit-unions-big-bet/
- https://www.investopedia.com/how-to-cancel-a-credit-card-4590033
- https://www.nerdwallet.com/article/finance/how-many-credit-cards
- https://www.cnbc.com/select/ways-to-use-amex-points-for-domestic-flights/
- https://awardwallet.com/blog/do-marriott-points-expire/
- https://time.com/personal-finance/article/what-happens-if-you-go-over-your-credit-card-limit/
- https://www.afbank.com/article/should-you-keep-your-credit-utilization-at-30-percent-or-below
- https://www.businessinsider.com/personal-finance/do-credit-card-points-miles-expire
- https://www.ck12.org/flexi/cbse-math/percentage/what-is-30-percent-of-1500/
- https://www.forbes.com/advisor/credit-cards/how-many-credit-cards-should-i-have/
- https://www.businessinsider.com/personal-finance/average-american-debt
- https://www.bankrate.com/finance/credit-cards/canceling-a-credit-card-application/
- https://money.usnews.com/credit-cards/capital-one
- https://wallethub.com/answers/cc/how-much-is-100000-american-express-points-worth-1000292-2140820017/
- https://www.lendingtree.com/credit-cards/articles/how-many-miles-do-you-need-for-free-flight/
- https://wallethub.com/answers/cc/american-express-rewards-redeem-1000354-2140674060/
- https://www.ck12.org/flexi/cbse-math/percentage/what-is-30-of-1000/
- https://fortune.com/recommends/credit-cards/how-many-credit-cards-should-i-have/
- https://www.nerdwallet.com/article/credit-cards/how-to-redeem-credit-card-rewards
- https://www.nerdwallet.com/article/travel/amex-points-value
- https://www.thebalancemoney.com/what-s-a-good-credit-limit-on-a-first-credit-card-960003