How Many Credit Cards Does The Average American Have in Their Wallet?

Credit cards have become an indispensable part of everyday life for most Americans. They provide convenience, security, rewards and more. But just how many credit cards does the average American carry on a daily basis? Let’s take a look at the surprising facts.

The National Average is 4 Credit Cards

According to a 2019 credit report by Experian, the average American has about 4 credit cards in their wallet or purse at any given time. This number has held steady over the past few years, even with the rise of debit cards and mobile pay options.

So why do Americans continue to carry multiple credit cards? There are a few key reasons:

Maximizing Rewards

Many credit cards today offer lucrative rewards programs including cashback points, miles, and more. Savvy consumers can rack up significant rewards by using different credit cards for different categories of spending. For example, you might use one card for dining, another for groceries, another for gas, etc. More cards = more rewards.

Utilizing 0% APR Offers

Credit cards with intro 0% APR periods allow you to make large purchases interest-free for 6-18 months. Consumers often apply for new 0% cards to finance appliances furniture, electronics home repairs and more.

Building Credit History

Having multiple open credit cards with a long positive history helps build your credit score over time. This allows you to qualify for the best loan rates down the road.

Emergencies

Carrying a few credit cards provides peace of mind in case of lost cards, fraud, declined transactions or other issues. Having backups ensures you still have access to credit when needed.

Geographic Differences

While 4 cards is the national norm, the average number of credit cards varies quite a bit by state. In general, Americans on the East and West Coasts tend to have more cards compared to those in the Midwest.

Here are some of the key findings:

• New Jersey residents have the most cards on average at 4.1
• Connecticut, New York and Florida are also above 4
• Western states like California, Nevada and Alaska are near 4
• Midwest states like Iowa, Kansas and Indiana average 3-3.3 cards
• Mississippi and Alaska residents have the fewest at 2.8 on average

The reason for these disparities is not entirely clear. Cost of living, access to credit, and lifestyle likely play a role. But the differences between states are fairly small in the grand scheme.

How Many is Too Many?

So when does having multiple credit cards start becoming excessive and problematic? As with most things in personal finance, the right number depends entirely on your situation.

If you are financially responsible, pay bills on time, and avoid debt, then having 6, 8 or even 10 cards is fine. On the other hand, if you carry balances, miss payments or have trouble managing credit, just 2 or 3 cards can be too much.

A good rule of thumb is to only have as many cards as you can manage responsibly. Here are a few signs you may have exceeded a healthy number of credit cards:

• You frequently miss payments or can’t remember when different bills are due
• You’re only making minimum payments each month
• You find yourself relying on credit cards to cover basic necessities
• Your balances are steadily increasing each month
• Your credit score is declining

Maximizing Your Cards

While the average American has 4 credit cards, you don’t necessarily need to match that number. Instead, figure out what makes the most financial sense for your spending patterns and goals.

Aim for a mix of cards that provide the most value like cash back, travel rewards, 0% financing offers, etc. And continually monitor your credit as new accounts will lower your average age of credit history.

Used responsibly, multiple credit cards can save you money and provide important protections. But be cautious of signs you’re taking on more credit than you can handle. Stick to a number of cards that works for your lifestyle and you’ll reap the benefits without the risks.