How Many Credit Cards Should You Have?

When it comes to credit cards, plastic payment tools linked to a line of credit issued by banks or financial institutions. Also known as charge cards, they’re not just for spending—they’re powerful tools that can build or break your credit score, a three-digit number banks use to judge how risky you are to lend money to. In India, most people carry one or two cards, but having more isn’t automatically bad—if you know how to use them right.

Your credit utilization, the percentage of your total credit limit you’re actually using. is one of the biggest factors in your score. If you have five cards with a $10,000 limit each and you spend $2,000 a month, your utilization is 4%. That’s excellent. But if you have one card with a $5,000 limit and you spend $4,500, your utilization jumps to 90%. That tanks your score. So it’s not about how many cards you have—it’s about how much you owe compared to what you can borrow. Banks also look at your credit limit, the maximum amount you can charge on a card at any time.. A higher total limit gives you breathing room, which lenders see as a sign of financial stability. But if you open too many cards too fast, it looks desperate. Each new application triggers a hard inquiry, which can drop your score by 5 to 10 points. That’s why smart users in India space out applications by 6 to 12 months.

There’s no magic number. One card is fine if you pay it off every month. Two or three can help if you use them for different purposes—like one for groceries, another for travel rewards, and a third as backup. But if you’re juggling five cards and forgetting due dates, you’re not managing them—you’re being managed by them. Most people who get into trouble with credit cards don’t have too many; they have too little discipline. The goal isn’t to collect cards like trading cards. It’s to use them to prove you can handle credit responsibly. If you’re trying to build credit, start with one secured card. If you’re trying to boost your score, keep old accounts open even if you don’t use them. And if you’re thinking of applying for a home loan next year, don’t open a new card this month. Your credit history is a story. Every card you open or close writes a sentence. Make sure they all add up to a strong one.

Below, you’ll find real advice from people who’ve been there—how to pick the right card, when to close one, and how to avoid the traps that leave scores in ruins. No fluff. Just what works in India’s banking system today.