How many credit cards should you own? Key tips for managing your finances | Mint

The Indian credit card market as of March 2025 continues to grow at a fast pace, with estimates predicting a spectacular growth in card volumes in the future. But how many credit cards do you need?

Now it is a given that there is no single answer to this, it varies based on spending patterns, payment capability, investment goals and financial objectives.

The case for having several credit cards

Having more than one credit card can help in numerous ways, such as easier access to higher credit and customised rewards. For example, a frequent traveller can be helped by a travel card with air miles and lounge membership, and another card for cashback on everyday spending such as groceries or petrol. Most Indian banks, such as HDFC Bank and SBI Card, have special cards for different uses like dining, shopping, or entertainment.

As of January 2025, credit card expenditure increased 10.8% year-over-year to ₹1.84 trillion as per RBI data, an indication of increased use of credit transactions. It is an indicator that consumers are resorting to the use of credit cards for the majority of spending, and hence a few cards become desirable for handling various categories of expenditures.

Hazards of overstretching credit

While several cards are convenient, they have an Achilles’ heel. A missed payment on any one of them can adversely appear on your credit history, result in forced debt build-up and damage your credit rating. It is also important to note that annual fees on high-end cards can go through the roof unless accompanied by proper usage and effective financial management with a focus on keeping credit utilisation ratio in check. Personal finance experts advise you to keep cards to manageable levels and check your credit score consistently.

India has more than 100 million credit cards as of March 2025 according to RBI, and major banks such as HDFC Bank, SBI Cards, and ICICI Bank are dominating the growth in credit card distribution. Nevertheless, even with this surge, small-scale institutions remain cautious owing to rising delinquencies and policy actions.

Finding the right balance

For the typical consumer, two or three credit cards are ideal. Diversifying with one for rewards and another for emergencies is possible without feeling submerged. Compare products against your spending before requesting additional cards and pay in full to avoid accumulating debt. Managing debt and consistently making repayments on time are some extremely important points to always keep in mind.

Finally, an individual’s credit card count will differ. Timely use and judicious choice are the tricks to gaining the best benefits and curbing maximum danger. With Indian credit card usage projected to have more than 200 million cards by 2028-29 according to a report by PwC, the shopper has to remain cautious of the newly discovered charge fees and amended terms.

Conclusion

Therefore, to conclude, it is important to clearly understand that owning a credit card comes with risks. These are credit instruments that open up a line of credit. Such instruments should only be used with extreme caution and care, as they can result in the piling up of debt and interest upon interest.

If in doubt, always consult a certified financial adviser before applying for credit cards, so as to clearly understand the risks, terms and conditions associated with these credit instruments.

(Note: Using a credit card carries its own set of risks.)