How much credit does the average person have?
The Center for Financial Services Research found that an average of 87 percent of Americans hold four credit cards. But is this the correct number for you? Here are some tips to help you decide.
Suppose you already have several credit cards and are interested in opening another. In that case, you may wonder if the number of credit cards is too much for your situation. There is no perfect answer to this question. Still, the 2019 Experian Consumer Credit Review found that the average American has four credit cards. If you can manage multiple credit cards, you will be able to maximize your rewards and annual fees.
Having more than one credit card can be more convenient. Still, you should always check your credit history, finances, and personal goals before opening additional cards. When applying for a new credit card, your credit will be dinged by five points for every application. It does not make sense to open an application when you plan to take out a loan or raise your credit rating.
Connecticut, Georgia, and Alabama have the highest card per-person averages, with 4.1 credit cards per person. New Jersey, Nevada, and Texas have the lowest card per person, with 2.8 cards per person.
How to know if you have too many credit cards
Credit card is a significant aspect of the lives of many Americans. Nevertheless, that doesn’t mean carrying four credit cards is the optimal approach. There isn’t a one-size-fits-all arrangement. It’s reliant on your situation. Credit card optimizers may wonder if there is an excessive amount of credit cards. Thankfully, there isn’t! Just as long as you usually pay your bill on time, there’s no optimal number of credit cards to hold.