How do multiple Credit Cards affect your credit score?

3 MinsJan 17, 2023

Thinking of owning multiple credit cards? Read this guide on how to boost your credit score while owning multiple credit cards.

How do multiple Credit Cards affect your credit score?

These days, it is common practice to own more than one credit card at a time. Consumers use multiple credit cards for several reasons. They may wish to increase their credit limit and enhance their prospects of earning more rewards and getting access to instant cashback. They may also wish to access multiple types of rewards, from travel miles to shopping rewards. They may also be motivated by the prospect of improving their credit score.

A higher credit score paves the way for you to access more credit in the future. It may be in the form of a business loan, personal loan, home loan, or education loan. Your credit score is a key metric used by credit providers to gauge if you have the potential to pay back the loan on time. Let us get a deeper understanding of how multiple credit card ownership affects your credit score.

Effect of multiple credit cards on credit score

Credit card ownership presents an opportunity to improve your credit score while also earning rewards for spending. However, merely owning a credit card does not guarantee that your credit score will improve. How you use your cards is more important.

  • If you adopt practices such as paying your credit card bill on time, and paying the full amount and not merely the minimum amount due, this creates a foundation for an improved credit score.
  • If you are always late on your payments, or continuously pay only the minimum amount due every month, then it does not matter if you have one credit card or multiple credit cards. This behaviour will result in a reduced credit score.
  • If you want to expedite the growth of your credit score, you can consider taking on multiple credit cards. But be sure to make all bill payments on time.
  • Your credit utilisation rate affects your credit score, i.e., the total debt divided by your total available credit. For instance, if you max out all your credit cards, this will negatively affect your credit utilisation rate, which in turn lowers your credit rating. 30% credit utilisation rate is considered ideal.
  • When your credit card provider increases your credit limit due to positive consumer habits, this upgradation also positively affects your credit score.

[Also Read: Importance of choosing a credit card that suits your needs]

Is CIBIL score the same as credit score?

A credit score is a generic measure of a consumer's creditworthiness. It has a rating between 300 and 900. CIBIL score is the credit rating offered by Credit Information Bureau (India) Limited, one of four agencies authorised to offer a credit score. These credit rating bureaus are linked to major banks, housing finance companies and non-banking finance companies (NBFCs). You can check your credit scores on the websites of these bureaus.

How many credit cards should I own?

The number of credit cards you own completely depends upon your lifestyle needs. For instance, if you want to access travel miles, you can take on a credit card specifically for this reason. You may take another credit card specifically for shopping and dining out benefits. If you own a car, you can go for a credit card that offers fuel surcharge waivers. Be sure to continue adopting the best credit card usage practices whether you have one or multiple credit cards.


Axis Bank offers a range of credit cards that are tailored to meet a diverse set of customer needs. You can choose from a wide range of premium, co-branded and lifestyle cards, with rewards spanning travel, shopping, fuel perks, dining out and movie deals. Be sure to use the credit card comparison tools offered by Axis, which help you choose the best credit cards to serve your lifestyle needs and financial goals. This will help you build a positive credit score.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.