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Home » Multiple Credit Cards? How to Manage Them Without Affecting Your Credit Score!

Multiple Credit Cards? How to Manage Them Without Affecting Your Credit Score!

The use of credit cards has transformed the field of finance nowadays. These little cards have significantly altered how people consume and buy goods and services. Credit cards enable people to take out funds using a line of credit, though they ultimately have to pay them back. However, every credit card has a certain limit, card users are restricted from exceeding it.

Users are encouraged to pay their dues as soon as possible rather than settle for the least amount. This practice is done to save the user from harm to credit ratings as well as to be revealed in credit reports. Just before we begin, we must first understand what a credit score is and the factors that influence it.

A credit score represents a basic numerical measure of your credit history. A higher credit card score indicates fewer financing risks; therefore, prospective lenders will look for it before offering loans to you. At this point, the query comes about, “what number of credit cards may you have while maintaining good credit scores?” The answer is that an individual can have more than one credit card as long as his or her credit score remains good. However, if you have multiple credit cards that are very new, your score on credit bureaus for credit cards may be low since it reduces the average count age.

How Does the Credit Score on a Credit Card Get Calculated?

A credit score is a three-digit numerical indicator of a person’s credit history. The figure might range between 300 and 900. Whenever a person’s scores are more than 760, they have a high credit score.

Credit scores are generated primarily by focusing on the 5 elements listed below, with a few factors having significantly higher significance than others.

  • Payment History

Payment history is the most important scoring criterion, accounting for around 35% of your total score. Credit cards become the most important variable when it comes to credit payments made from the amounts owed. Holding many credit cards is sometimes inconvenient because you must make payments on each of them monthly. Payments made late might be reported to credit bureaus, reducing the score you receive for credit.

  • Debt to Credit Ratio

Debt to Credit Ratio is the ratio that compares the remaining obligations on credit cards to the credit that is accessible, also known as credit utilization. The ratio has an impact of 30%, and if it crosses that threshold, your results will suffer. Numerous credit cards may help you boost your current credit score relative to the remaining debt, but this ratio shouldn’t go over 30%.

  • Average Age of the Cards

This is important for people who have several credit cards because the average age of the card includes 15% of the credit score. People with a lengthy credit history ranging from 11 to 25 years have an outstanding credit score. A shorter credit history might lower your score on the credit bureaus, while including fresh credit cards may lower the average age of existing cards.

  • Credit Types

The category of credit you have impacts your credit score by roughly 10%. Credit bureaus frequently look for varied credit portfolios that involve retail accounts, mortgages, installment loans, and a variety of credit cards.

  • New Credit Accounts

Opening an additional credit account will eventually result in a decline in your credit score. A lot of credit accounts result in an excessive number of inquiries that, at some point, alert the credit agencies to greater credit risk. It is critical not to rack up multiple credit cards in just a few months, as this has a 10% impact on your credit score.

The Drawbacks of a High Credit Utilization Ratio

Cardholders should aim for a low credit utilization ratio. This is generally a high credit utilization ratio that shows that the person who uses the card is constantly in a cash crisis or is an obsessive spender. A high credit utilization ratio periodically indicates that the consumer may default on his obligations, leading to an adverse effect on his overall credit score. As a result, individuals must guarantee that their card’s consumption has been kept under control as well as within the specified limit.

What Number of Credit Cards Should One Have?

Generally speaking, there are no magical numbers to have because every person’s condition is unique. A compelling case may be presented in favour of owning a minimum of one credit card in order to fully take advantage of the inherent ease, protection, and other perks. The justification for using several credit cards depends on whether you require additional money to cover every month’s budget or whether you want to use your regular purchases to earn multiple types of rewards, such as cashback redemption rebates or miles for airlines.

Is the CIBIL Score and Credit Score the Same?

The CIBIL score isn’t identical to your credit score. A credit score is a broad indicator of a user’s creditworthiness that normally falls between 300 and 900.

The CIBIL score relates to the credit rating presented by the Credit Information Bureau (India) Limited, one of the authorized credit scoring companies. These credit rating agencies are strongly connected with large banks, home finance businesses, and NBFCs.

How to Manage Multiple Credit Cards Without Affecting Your Credit Score?

To mitigate the possible adverse impact of many credit cards on your rating with the credit bureaus, implement these prudent credit handling standards:

  • Make payments on your bills on time to preserve a decent credit score. To avoid missing a payment deadline, schedule payments automatically or set alerts.
  • Set up a budget based on your earnings to arrange your monthly spending and credit card use. Avoid splurging and rising debt on several cards.
  • Managing due dates for payments might be challenging when using numerous cards. Use calendars or financial applications to stay organized.
  • Keep away from cancelling old accounts. The duration of your credit history is important. The closure of an old credit card may decrease your account’s average age, thus affecting your credit score.
  • Broaden your credit mix by having multiple types of cards. Although credit cards are helpful, maintaining a broad credit profile may be beneficial.
  • Make periodic checks of your credit report to identify problems and inaccurate information. Raise a dispute if there is anything unusual in your credit report.

Guidelines for Developing a Solid Credit Score

If you want to develop and keep good credit, you must have a solid and regular track record of handling borrowed funds properly.

Especially it is Crucial To Remember

  • Make payments on all bills on time. No refusals!
  • Do not exceed over 30% of the credit limit on every single one of your credit cards at any moment throughout the month.
  • Make use of credit frequently.
  • Always ask for credit that you must have.
  • On an annual basis, at least once, check each of your credit reports to ensure that they’re accurate. If you see a problem, focus on actions to solve it.

If you intend to hold a variety of credit cards, you shouldn’t attempt to do so in a short time since this will reduce your standard average credit age, dropping your credit score down. However, if you currently have many cards, it is effective not to cancel them because this will raise your overall availability of credit, which will improve your credit score. As a substitute, you may use a single or two for a month to maintain track of payments, carry out periodic credit score checks, and continue to increase the availability of credit in your debt-credit ratios.

How to Apply for a Credit Card?


Navigate to the “Card” option.

Click on the “Bank Wise” Option

Choose a card from a bank as per your preferences.

If you’re an existing client, complete the form. New people must first register before submitting their application form.

Enter your name along with your mobile number and email ID for OTP authentication.

After OTP Authentication, Fill up the details like your profession, Salary, PAN number, City, etc.

Send your application form.

How Can Refer Loan Help You Build Your Credit Score?

  • Refer Loan always suggests people set reminders to pay back the EMIs on Time.
  • Refer Loan Guides Customers holding credit cards, to clear all the dues on time and regularly.
  • Refer to Loan guides on how to check errors in the CIBIL Report.
  • Refer Loan asks the customers to monitor joint or co-signed Accounts on a regular basis.
  • Refer Loan’s website features informative blogs and updates about overcoming financial hardships with loans and credit cards.
  • Refer Loan reduces your application rejection rate, which eventually maintains your good CIBIL.

Bottom Line

Holding credit cards and using them are excellent choices. Credit cards serve as magic cards if you are confident in your ability to manage them. However, if you don’t use these properly, they might have a bad effect on your credit score. Overuse of credit ratios, late payments of bills, hard inquiries, and other factors can all contribute to a drop in credit score. However, when utilized wisely, these may help you improve your credit score. It is not generally true that having a lot of credit cards negatively impacts your credit score. Owning several credit cards requires careful planning and handling.

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