The pros and cons of having more than one credit card

From specialty travel rewards cards to cards that offer generous cash-back or points on everyday purchases, there are a plethora of choices for your wallet. It might feel hard to choose just one credit card — but do you really have to?

As it turns out, not necessarily. Having more than one credit card can even offer financial benefits, such as a higher credit limit to work with and a backup card just in case. But there are drawbacks to weigh, too, especially if you tend to struggle with overspending or organization.

Here is a look at both the pros and cons, so you can determine whether you would like to have more options or if you are better off staying true to one card only.

Pro: You will have more flexibility, and a backup

Having more than one credit card can introduce an element of flexibility. Say you encounter an emergency expense. In that situation, by “splitting the cost of a big expense, such as medical bills, between two credit cards, you are eating up less of your credit limit on one,” said CNBC Select. Plus, you have a card to fall back on if “one of your credit cards becomes compromised or is declined,” said SmartAsset.

Con: You will have more to keep track of

The more credit cards you use, the “harder it is to keep track of your purchases, balances and due dates,” said Experian. Any lapses could lead to missing a payment, in which case “you’ll be slapped with a late fee on top of interest charges for the month,” and even “damage your credit if you’re late by 30 days or more.”

Pro: Your credit limit will go up, which can help your credit score

“With a thin file, how you use your credit can have a bigger effect on your scores than if you had more accounts,” given that “with only a few cards, it might not take much spending to use a lot of your overall credit limit,” said NerdWallet. Adding another card to the rotation could lower your credit utilization, which can benefit your credit score.

Con: You can more easily rack up debt

If you are “prone to overspending or already struggling with credit card debt, having more than one card is risky,” said SmartAsset. With multiple cards, you will get greater latitude to spend, and also have a harder time getting a quick snapshot of how much total debt you have accrued, since balances are spread around.

Pro: You can better maximize rewards

“Carrying multiple credit cards allows you to earn a greater variety of rewards — including cash back on grocery purchases, points on travel bookings and more,” said Bankrate. You can even strategically use cards to line up with specific rewards or bonus categories, such as reserving one card for gas fill-ups and grocery store trips, and another for booking travel.

Con: Your credit could take a hit, at least temporarily

“Charge offs, late payments and high credit utilization rates can create negative marks on your credit reports if you are not careful,” said Equifax. And even if you are, that does not mean you are immune to credit dips. Because the average length of your credit history influences your score, “new card accounts often lower your credit score about five points,” said CNBC Select, alongside any impact you may see from the hard inquiry associated with your application.