What is the ideal number of credit cards for a good credit score?

livemint.com:

In order to maintain a good credit score, there is not any specific number of credit cards that's considered ideal. This can vary based on financial habits of investor, responsibilities, and credit management capabilities.

In general, having a mix of different types of credit accounts, including credit cards, can affect your credit score positively, as long as they are managed responsibly. 

However, it’s essential to avoid opening too manycredit cards at once, as this may lower your average account age and raise the risk of missing payments. For example, Ashish Verma, 30-year-old data analyst, received a credit card with ₹10 lakh maximum limit in January 2024.  

He should, therefore, refrain from applying for another credit card for the next few months. However, he can apply for raising the maximum limit of this card after using it for a few months in case the need so arises.

ALSO READ: How do student loans influence your credit score?

These are some of the key factors which investors must consider while determining the ideal number of credit cards.

Payment history: Making payments on time is one of the key factors which influence your credit score. If you can manage a number of credit card payments in a responsible way, it shows positively on your credit history.

Credit Utilisation: This is the ratio of your credit card balances to your credit limits. It is  important to keep your credit utilisation low (i.e., lower than below 30%) to maintain a good credit score. Having multiple credit cards can help spread out your balances and keep utilisation lower.

Financial responsibility: One should consider your potential to manage multiple credit cards responsibly. If you are vulnerable to overspending or missing payments,