An excellent credit score is necessary for acquiring much-needed loans on the best possible terms and conditions. But how many credit cards do the most creditworthy people possess? And does having a certain number of credit cards help their credit score in any way?
People with excellent credit scores keep an average of 3 open credit cards. When you consider both closed and open accounts, then the total number is 6 on average.
But can having more credit cards boost your credit score?
More cards mean that you have a greater credit limit to borrow from. With more credit cards, it is easier to stay within 30% of your credit limit. This 30% ratio is the golden standard for a very important factor in your credit score – the credit utilization ratio.