Do Multiple Credit Cards Improve or Damage Your SBI CIBIL Score? Let’s Find Out

Although there isn’t a set number of credit cards you should have, it’s important to be aware of the potential impact having numerous cards could have on your credit score. More than the number of cards you have, how you apply for and use credit cards affects how your credit score is calculated. 

Let us deep dive and understand this in detail.

1: A number of deadlines must be kept in mind.

Even though having a credit card and other credit cards can be highly practical, it can occasionally be difficult to remember crucial dates. Using many credit cards increases your risk since you must be aware of numerous terms of service and keep track of numerous payments and due dates. Additionally, depending on how you manage important components of your credit cards, such as timely payments or carrying a balance, your SBI CIBIL score could increase or decrease when you do CIBIL score check. If it’s difficult for you to remember when each payment is due, the likelihood that you’ll forget to make one may rise.

Of course, skipping or even paying your credit card bill late will hurt your credit score. To make your life easier, you may set an alarm on each credit card to notify you when your payments are due. Instead, you might want to ask your credit card companies whether you can change your payment due dates. If your issuer allows it, moving all due dates to the same day can save you a tonne of money.

2. Raises the total credit limit

Having numerous credit cards may encourage you to charge more than you can afford to pay back each month because more cards equal a bigger credit limit. Although it must be enticing, it’s crucial to monitor your expenditures to prevent going overboard. Take out loans only if you can afford to pay them back before interest is imposed, as well. Ensure that your balance is consistently between 30% and 50% of the total allowed on your credit card. Your SBI CIBIL score may suffer if you forget to pay a payment or pay it after the due date.

3. Refrain from doing excessive credit enquiries

It is essential to comprehend the process before applying for a new credit card. The lender will thoroughly check your credit history when you apply. In contrast to soft inquiries, which have no impact on how your credit score is computed, a hard inquiry will show up as a line item on your credit report. If you apply for a lot of cards rapidly or if there were a lot of inquiries in recent months, your SBI CIBIL score may suffer when you check it. Therefore, it’s important to carefully weigh all of your card options before applying.

4. Throwing away your outdated credit cards

The overall age of your credit accounts has a big impact on your credit score. Avoid cancelling your old credit cards while moving to new ones because doing so will harm your credit score. Use your older credit cards for small purchases instead because they will build a strong, trustworthy history that will gradually assist your score grow. If you are unsure of how you will use a credit card in the long run, wait to apply for one.

5. Greater chance of maintaining lower CUR

The percentage of available credit that you are using on your credit card, also known as your credit use rate or amounts outstanding, is the second-most important factor in establishing your credit score. With each new card you apply for, your credit limit will increase, increasing your available credit. This could be a great strategy to raise your credit utilisation rate and credit score if you keep making the same or similar number of purchases that you did before to getting the new card. When you conduct CIBIL score check, you run the risk of using more of your available credit and losing points. if you make numerous purchases using the increased credit line. Spending 10% of your gross income on a regular basis is a wonderful strategy to accumulate lots of credit cards.

How many credit cards should a person own?

You should be aware that nobody can provide you advise on how many credit cards you should truly have. As long as you regularly pay all of your payments on time, maintain low balances, and avoid going into debt, you can apply for a new credit card if you like the idea of having additional alternatives. With one or two credit cards as opposed to five or ten, your credit score is equally as good. Whatever you choose, just take care to make financially responsible decisions.

Can having multiple credit cards improve your rating?

Having many credit cards could raise your overall credit limit because each credit card has a different credit limit. Having a lot of credit cards can either help or hurt your credit score depending on how much you charge and how you repay them. If you manage your additional credit cards responsibly and make your monthly payments on time and in full, having more cards could raise your credit score. This is due to the fact that getting multiple credit cards will raise your credit limit. Experts advise spending no more than a modest percentage of your current available credit each month, ideally no more than 30%, to demonstrate responsible credit management and improve your SBI CIBIL score.


Having more credit cards will allow you to increase your credit limit, which will boost your credit score if you use them responsibly. No matter how many credit cards you have, make sure to always pay them off in full each month and maintain a low amount. Avoid making impulsive credit card applications. Always do CIBIL score check to determine if you qualify before applying for a credit card. Once you have a credit card, you must continue to practise sound money management to prevent it from becoming a burden.