What is a credit card APR?
How do credit cards work
So how many credit cards can a person have? Quite simply, there’s no set limit, and there’s no one answer since financial needs vary from individual to individual. However, if you’re weighing up whether or not to add a card or two, there’s a number of things to bear in mind.
When it comes to credit cards, it’s true there’s no right or wrong amount to keep in your wallet. But rather than asking how many cards you can have, perhaps the key questions should always be how do you plan to use that extra card, and can you cover the repayments when you do.
One of the benefits of having several cards is that they can be used for different purposes. For example, if you’re paying interest on an existing credit card, you could reduce the cost by transferring the outstanding balance to a new 0% balance transfer card.
Or, you could use one card to earn rewards on your everyday spending, and another to save on exchange fees whenever you travel abroad.
It’s important to remember though, the more cards you have, the more admin you’ll have to manage and payments you’ll need to meet each month. Then, of course, there’s always that extra temptation to spend.
As having a number of cards comes with both pluses and potential minuses - it’s worth considering both.
The representative examples you see in our offers give you an idea of how much it could cost if you borrowed £1,200 in a year. This helps you compare different products and provides a guide on how much taking out credit could cost.
The approval of your application depends on financial circumstances and borrowing history. The interest rates, may differ from those shown.
By keeping several cards, using them responsibly, and paying off the balance on time every month, it gives banks and other lenders confidence that you can handle credit. Here are a few more of the positives:
While there are some clear benefits to keeping several cards, there can be some potential pitfalls too. Here are a few to note:
There are different types of credit cards, and each comes with its own benefits. So, before adding a card, it’s good to have a clear understanding of how it works, and why you need it. Comparing the types of credit cards below should help.
You can reduce the amount of interest you’re paying on any existing credit cards by moving the balance to a single balance transfer card. That’s because balance transfer cards typically offer lower rates or 0% interest for a fixed period. Learn more about how a balance transfer card works.
With a rewards credit card, you earn rewards every time you use it, most commonly, as cashback, points or frequent flyer miles (also known as air miles). So using this type of card can be a simple way to get a little something back on your everyday spending. Learn more about how a rewards credit card works.
A 0% purchase credit card lets you buy things now, then pay off the amount you’ve spent over a fixed period of time, interest free. So this type of card can be useful for making bigger, more expensive purchases. Learn more about how a purchase credit card works.
Good as a starter credit card and for those wanting to build a better credit history. By making smaller purchases and paying off the balance each month, using this type of card can help improve your credit score.
If you’re thinking of adding a card, finding the right one for you is key. Why not take a look at our selection to help you choose.