How Many Credit Cards Should a College Student Have?

How well do I manage money? Every college student should ask themselves that question before getting a credit card and when deciding how many credit cards to have.

By Doug Milnes, CFA

Reviewed by Brett Holzhauer, CPFC

Updated: December 10, 2024

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The optimal number of credit cards for a college student (or anyone) varies based on individual needs and financial habits. Many students start with one credit card and focus on building a positive credit history. As they gain experience and confidence in managing credit responsibly, they may choose to apply for additional cards if it aligns with their financial goals and needs.

While credit cards allow students to build their credit, they also come with some pitfalls. Sure, multiple cards give you access to increased credit, but you risk borrowing more money than you can repay. If you plan to maintain multiple credit cards, it’s important to avoid overspending and make your payments on time. MoneyGeek recommends repaying your balances in full each month to avoid accumulating costly interest.

KEY TAKEAWAYS

Student credit cards tend to be easier to qualify for than most other types of credit cards.
Proof of enrollment is often required during the application process to qualify for these cards.
MoneyGeek recommends waiting six months between credit card applications.

Factors to Consider When Applying for Multiple Credit Cards

The number of credit cards a student should have depends on their individual financial situation, responsibility and needs. Here are some considerations to help determine how many credit cards a student should have:

Credit History Building

Students often get their first credit card to start building a credit history. Having one card can be sufficient for this purpose.

Emergency Fund

Having a backup credit card can provide financial security in case of emergencies when you can't access your primary source of funds.

Budget Management

Some students prefer having separate credit cards for specific expenses, such as one for everyday spending and another for emergencies or large purchases. This can help with budgeting.

Rewards and Benefits

Students who are responsible for their finances may choose to have multiple credit cards to take advantage of different rewards, cashback or benefits offered by various card issuers.

Credit Utilization

Maintaining a good credit score often involves managing your credit utilization ratio (the amount of credit used compared to the total credit limit). Having multiple credit cards can help keep this ratio lower, which is generally better for your credit score. Ideally, your credit utilization ratio shouldn’t exceed 30%. Using multiple credit cards can help you keep your credit utilization ratio low.

Financial Responsibility

Students need to be cautious about acquiring too many credit cards if they're not confident in their ability to manage them responsibly. Having too many cards can lead to overspending and potential financial trouble.

Fees

Remember that each credit card may come with fees, such as annual or foreign transaction fees. Consider whether the benefits of each card outweigh these costs.

Credit Inquiries

Applying for multiple credit cards in a short period can lead to multiple hard inquiries on your credit report, which can temporarily lower your score.

More: Guide to Credit and Credit Cards for Students

Pros and Cons of Multiple Credit Cards

Pros

Build credit by sticking to responsible spending habits
Earn rewards
Increase credit limit
Keep your credit utilization ratio low

Cons

Potential to incur debt you cannot repay
Adverse effect on your credit score
Difficult to keep track of and manage multiple due dates

Can Multiple Credit Cards Help or Harm Your Credit Score as a Student?

Having multiple credit cards can help or harm your credit score, depending on how you use them. Aspects that affect your credit score include your payment history, the amount you owe, the length of your credit history and the types of credit you have.

Keep in mind that your credit score has a bearing on your success in applying for a housing lease, auto loan or mortgage. Good to excellent credit scores increase the possibility of your application’s approval, while a low credit score could lower your chances or result in higher-than-usual interest rates. Sometimes, employers may check a potential candidate’s credit score before hiring them.

Most credit decisions made in the U.S. rely on FICO scores ranging from 300 to 850. Scores over 740 are considered high, and scores below 580 are low.

EXPERT TIP

If you miss a payment by a day or so, call your credit card issuer to ask for the late fee to be waived. If they accept, it will not appear on your credit report. If you do not communicate with your issuer, they will mark your credit report as late. — Brett Holzhauer, Credit Card Journalist

Managing Multiple Credit Cards

To effectively manage multiple credit cards as a student, it's essential to budget wisely. Allocate specific funds each month for credit card payments. Always ensure you cover the minimum payment, if not the full balance.

Organize your due dates. Aligning payment due dates can make it easier to remember when payments are due. Use a calendar, digital reminders or even consider changing the due dates with your credit card issuers to cluster them together.

Use technology to your advantage. Apps like Mint or YNAB can be invaluable in tracking expenses and setting payment reminders. Consider automating your payments to guarantee you never miss a due date.

A strategic approach to card usage can also help. Designate specific cards for certain types of purchases. For instance, use one card for groceries and another for online shopping. This categorization aids in streamlining your tracking and payment processes.

Regularly monitor your statements. This is crucial not only for identifying fraudulent activity but also for understanding your spending patterns.

Always stay informed. Periodically assess the utility of each card in your possession. If a card, especially one with fees, is seldom used, consider closing it. Continual education about credit will equip you to make the best decisions. Remember, discipline and organization are paramount. Always live within your means and remain aware of the implications of having multiple lines of credit.

Next Steps

Take some time to understand how you might benefit from having different types of credit cards. Once you've narrowed down what you're looking for, be sure to compare multiple cards across parameters such as APR, fees and perks before applying.

Frequently Asked Questions

The answers to these commonly asked questions about student credit cards can help you navigate managing multiple credit cards or deciding which are best for you.

When should you apply for a student credit card?

You should apply for a student credit card only when you are sure that you can make your payments on time.

Should a college student get a credit card?

A college student doesn't need to have a credit card. Students can build their credit in other ways, like making all bill payments on time.

Can you still build credit with one credit card?

Yes, students can build credit with only one credit card.

Is it bad to have two or more credit cards as a student?

As long as you have responsible financial habits, having two or more credit cards as a student is not necessarily harmful.

How many credit cards can you open in a year?

Technically, you can submit applications for credit cards as often as you like. However, if you wish to build your credit, consider applying for new cards once every six to 12 months. Some banks have restrictions on how often you can apply for new cards.

Can I apply for more than one credit card at a time?

Yes, you can apply for multiple credit cards at a time. However, note that doing so might harm your credit score, and lenders could view it as a red flag in the future.

How long should you wait between credit card applications?

MoneyGeek recommends waiting at least 90 days between credit card applications, although waiting six months is ideal.

What type of credit card should a college student get?

The different types of credit cards for students include no annual fee cards, cash back cards, rewards cards, balance transfer cards and secured cards. MoneyGeek recommends choosing the card type that’s most relevant to your spending needs and buying habits.

Are mail-in credit card offers for students scams?

Legitimate mail-in credit card offers are usually sent to people with good to excellent credit scores. If you receive one as a student, you have reason to be wary. Even if the offer is legitimate, it might be for a card with high APR and extensive fees.

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About Doug Milnes, CFA

Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets.

Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.

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