How Many Lines Of Credit Should You Maintain? 7 Considerations

Credit lines? They’re basically the backbone of a solid credit setup, right? Doesn’t matter if you’ve got a bunch of loan choices or snag the best credit card in the Philippines for starters you can leverage ’em to beef up your options. 

Use them smartly, and you’re building history, pumping up that score, unlocking sweeter deals on loans and cards. 

I mean, think about it: in a place like Manila, where everything from groceries to gadgets runs on plastic, having options feels like breathing room.

But hey, piling on more isn’t always the smarter move. You might be sitting there thinking, “Do I have too many? Too few? Am I even handling these right?”, especially with apps like Maya popping up everywhere, making credit feel one tap away. 

Yeah, before you tweak your lineup, adding or ditching, figure out what you can actually juggle without stress. 

Here are some real-talk factors to chew on for your credit toolkit. Trust me, I’ve seen friends go overboard and regret it.

The credit bureau of Eperien suggests that Americans, on average, had 3.9 credit cards as of the third quarter of 2023. 

Most American citizens generally build their credit portfolios gradually, as their needs and requirements expand. 

So, how many lines of credit should I have? It depends on factors like my needs, my ability to repay, and the existing debt.

Thus, it is not about what people have or what people do. This depends solely on your ability to repay and your needs and requirements. Hence, there are no necessary rules of thumb in this matter.

How Many Lines Of Credit Should I Have? What Are Things That I Should Consider?

There are no rigid rules that I may have to refer to while deciding how many lines of credit should I have. However, there are certain factors people should consider when making a decision.  These factors vary from person to person.

1. Your Ability To Manage Multiple Accounts

Every credit line’s got its own rules, deadlines, and payment quirks. If you’re on top of tracking a handful, maybe using apps like GCash reminders or a simple notebook, go for it; multiple can play to your strengths. 

But if due dates slip your mind or payments turn into a circus… well, simplify, man. Remember that time a buddy forgot a BPI card bill during payday rush? Chaos.

Too many, and missed payments creep in easily. Those aren’t just fee hits or extra interest—they ding your score hard, maybe for months. 

Smarter move? Start small, something you can wrangle, then scale up only when you’re dead certain you won’t drop the ball. Test it: track for three months straight, no slips.

2. Your Spending Habits

Credit’s handy, sure, but it sneaks up like a bad habit if you’re not watching—especially with buy-now-pay-later tempting you at Shopee or Lazada. 

Extra lines tempting you to overspend? Boom, debt avalanche. Take a hard look at how you handle ’em. Try these gut-check questions:

• Do I carry balances over month after month?
• Ever maxed a card without thinking twice?
• Does fresh credit make me hit “buy” more?

Any “yes”es? Dial back the lines to keep your wallet from imploding. What if you swapped impulse buys for a “wait 24 hours” rule? Game-changer.

3. Credit Utilization Ratio

That utilization ratio? Big player in your score. It’s just used credit versus total available, keep it low, like 30% or under, for the win. 

Lenders check this monthly, so it’s not some set-it-forget-it thing.

Say your total limit is ₱100,000, and your balance is ₱20,000: that’s 20%. Add a ₱50,000 card you don’t touch? 

Drops to around 13%, score boost. Caveat, though—this only flies if spending stays in check. 

A stricter limit helps with utilization only if you’re not racking up balances like it’s going out of style. Pro tip: Pay down before statements close.

4. Your Credit History

New to this game? Easy does it. Blast open a ton of accounts quickly, and your average age tanks—score takes a hit, at least short-term. 

Lenders might eyeball it like, “This guy’s desperate for cash?” I’ve heard bureau reps say it straight up.

But if you’ve got years under your belt, payments on point? You’re primed for more. Just ensure the new one’s worth it. Cheaper rates, killer rewards, or real flexibility. 

Don’t add fluff; ask, does this fit my life, like travel perks for OFW family trips?

5. Types Of Credit You Have

Lenders dig variety, so when growing your mix, think revolving stuff (cards, Maya Easy Credit vibes) plus instalment (car loans, personal loans). 

No need to force a loan for “diversity,” though, if your setup’s balanced and humming, stick to nailing what you’ve got. 

Chasing types for kicks? Nah. In the Philippines, with sari-sari loans and bank cards everywhere, balance what works for the daily grind.

6. Your Financial Goals

Let your goals steer this ship to something sensible. So, what’s the real why behind another line? Be honest—emergency fund gap or just FOMO?

Maybe:

Transferring high-interest junk to a lower-rate card.

Big buy coming, like a downpayment on a condo, need wiggle room.

Building credit the right way for that dream business loan.

If it doesn’t tie to a goal. Pump the brakes. Grabbing one ’cause it’s there, or shiny promo? Recipe for dumb debt. Pause and journal it out.

Impact Of Credit Inquiries: How Many Lines Of Credit Should I Have?

A new app means a hard inquiry on your report. One’s no sweat, but a flurry? Lenders think “trouble,” score dips a bit, and could be 5-10 points each, stacking up.

So, weigh it: benefits beat the hit? Space ’em out, apply only when it counts—keeps your profile shiny. Check your CIC report for free yearly to track ’em.

There’s no magic number for credit lines. It’s all about mastering what you’ve got, not stacking accounts like trophies. 

Mull your habits, aims, and that responsibility muscle, craft a portfolio that lifts you up, doesn’t bury you. 

Treat credit like a sidekick, not the boss, and your moves’ll set you up solid long-haul. Oh, and chat with a free credit counselor, or if stuck, they’re gold.