Logical reasoning might have you thinking that carrying multiple cards hurts your credit score, because available credit could get you into debt. Carrying a lone credit card could hold back your credit score, which might cost your more in finance charges in the long run. Limiting yourself to single credit card, however, may not preclude a high credit score.
Identification
The FICO scoring system is so complicated that not even the credit reporting bureaus truly know how anything affects it. If you have just one credit card and nothing else on your account, you may not have enough credit history to receive a rating or a high one. People with a good credit score tend to manage multiple loans of both varieties: installment and revolving.
Mix of Credit
Carrying just one card almost assuredly loses points in the "mix of credit" category of the FICO score. Borrowers should try for two revolving accounts for every installment loan, according to MintLife. On the other hand, you can overcome the limits of a single account by using it for many years, always paying on time and keeping a low balance.
The Safe Range
You want as many accounts with a perfect payment history as possible. Lenders rarely care about how many credit cards you have, only that you pay on time and keep a low balance. The FICO system does not penalize you for carrying too many credit cards until you acquire more than seven, according to the Motley Fool.
Tip
While the credit reporting bureaus give one free credit report each year, you typically must pay for your FICO scores from each agency. Free FICO score estimators can give you a good idea of your credit score. If you buy your scores and see they are low, consider adding a credit card, but slowly. Do not rush out and apply for several cards. The hard inquiries into your credit hurt your score and lenders may worry that you are in financial trouble with a rash of new cards.
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