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The number of credit cards you choose to have is an important personal finance decision. Factors like your spending habits, current debt and credit report may influence whether or not you choose to open a new credit card—and if you qualify for one. Why does the number of credit cards you have matter? Your credit profile is a large part of your digital identity, which includes a record of your financial activities.
And one of the factors that contributes to your digital identity is the number of credit cards you have in your name.
While there isn’t a specific ideal number of credit cards you should have, there are several variables to consider when it comes to opening an additional card.
For example, having fewer than five credit accounts (not just cards, but also other types of credit, such as loans) can make it difficult for the three credit bureaus—Experian, Equifax or TransUnion—to assign you an accurate credit score. Lower scores affect the interest rates you’re granted for auto loans, student loans, mortgages and more.
There are five important factors that determine your credit score, each of which has a specific percentage indicating how much it impacts your number.
How long you’ve had credit cards and how long you’ve made timely payments make up 35% of your credit score. If you’ve missed payments or made them late, your score will take a hit. And the more cards and loans you have, the more payment history there is to manage.
The amount of debt accumulated across loans and credit cards makes up 30% of your credit score. As with your payment history, more credit cards could mean more debt to manage. If you have a high debt-to-income ratio, your credit score will take a hit.
The amount of time you’ve had a credit card accounts for 15% of your credit score. This means that it may take some time for your new credit card to positively impact your credit score.
The range of loan types in your credit profile constitutes 10% of your credit score. So if you have a credit card, an auto loan, a mortgage or another type of loan in the mix and you’ve made your payments on time, your credit score should be positively impacted.
New credit makes up 10% of your credit score. When you open a new credit card, the application triggers a hard inquiry, which can have a negative impact on your score. New credit will also impact your credit history.
Learn more about earning a healthy credit score.
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Think it makes sense for you to get a new credit card? Take these three steps before you apply.
Another way lenders establish your creditworthiness is through the debt-to-income (DTI) ratio. The ratio is determined by dividing by your gross monthly income by your monthly debt payments. Use this handy DTI ratio calculator to determine your ratio.
The lower percentage your DTI ratio, the more likely you are to get approved for a new credit card. Typically, lenders will look for a DTI ratio of 35% to 40%.
One of the best ways to improve your credit score is to pay off your credit card debt in a short period of time.
As you’re paying the debt back, strive to pay more than the minimum amount each month. While it may seem nice that the monthly minimum payment is low, remember that only a little bit of this payment goes toward the principal, and the rest goes to interest. The more you pay each month, the faster you can pay off the debt.
Another tip: Take advantage of any cash-back rewards you have on your existing cards. As you spend money and earn cash back, you can use that money you get back to help pay your debt.
You can also try these seven tips for paying off your credit card.
Stick with established credit card issuers such as American Express, Discover, Visa and AAA. And choose the issuer with the card that best suits your lifestyle and needs.
When looking into a specific card, ask these questions:
Some credit cards are great for cash-back rewards, while others help you achieve your travel dreams. Consider your goals for having a credit card and choose an issuer that has the perks to suit that goal.
You’ll find that most credit card issuers base your credit limit on your credit report and your gross annual income. If you’re just starting out in your financial journey, it’s common for the limit to be under $1,000, but there could be a significantly higher credit limit if you have a good credit score.
Some cards require an annual fee, but others don’t, and the amounts vary widely. However, with the right rewards program, the perks can make up for this fee and more.
Some cards offer sign-up bonuses, while others give travel rewards. Some cards grant you access to brand partnership discounts. For more ideas, consider these tips for making money via credit cards.
When applying for a new credit card, remember that each application triggers a hard inquiry. Sometimes also called a hard pull, a hard inquiry is when a lender or credit card issuer takes an official look at your credit score.
This matters because each time it happens, it’s noted on your credit report. If you have too many inquiries, it’s a red flag to lenders that your debt-to-income ratio may be high. Too many credit inquires can hurt your credit score, although one inquiry a year will not impact your score. If you need to man an inquiry more than once in a year, you can get free credit reports at Credit Karma with no impact to your score.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
†Annual Percentage Rate (APR). Auto Loans. Rates and terms effective as of 6/23/2025. APR is accurate as of 6/23/2025. Advertised rates and terms are subject to change without prior notice. Additional terms and restrictions may apply. Other loan rates available. Subject to borrower qualification. Advertised rate includes a 0.25% discount when you set up automatic payments from any checking or savings account. Rate is variable. Offer valid on personal vehicle loans only. Criteria to receive the stated APR: Loan term 48 months or less new or used, model years 2019 – 2025 with a credit score of 740 or higher based on the Vantage scoring model. Buyer is responsible for all state or local fees. AAA Banking uses a managed credit program, and final APR is dependent on your credit score. An auto loan with an APR of 5.24% for a $20,000 loan at a term of 48 months, your estimated monthly payment would be $463. An auto loan with an APR of 5.49% for a $20,000 loan at a term of 48 months, your estimated payment would be $465. Private party sales will not be financed. Auto loans are offered by Grasshopper Bank, N.A. Member FDIC.
††Annual Percentage Rate (APR). RV Loans. Rates and terms effective as of 3/7/2025. APR is accurate as of 3/7/2025. Advertised rates and terms are subject to change without prior notice. Additional terms and restrictions may apply. Other loan rates available. Subject to borrower qualification. Advertised rate includes a 0.25% discount when you set up automatic payments from any checking or savings account. Rate is variable. Criteria to receive the stated APR : Loan term 48 months or less, $5,000 minimum loan amount, model years 2023-2025, with a credit score of 720 or higher based on the Vantage scoring model. Buyer is responsible for all state or local fees. AAA Banking uses a managed credit program, and final APR is dependent on your credit score. An RV loan with an APR of 7.49% for a $35,000 loan at a term of 48 months, your estimated monthly payment would be $846. An RV loan with an APR of 7.74% for a $35,000 loan at a term of 48 months, your estimated monthly payment would be $850. RV loans are offered by Grasshopper Bank, N.A. Member FDIC.
§ Auto Loan Calculator
The figures entered on the input page of this calculator are for hypothetical purposes only. You should enter figures that are appropriate to your individual situation. The results provided by this calculator are also intended for illustrative purposes only and accuracy is not guaranteed. This calculator is not intended to offer any tax, legal, financial or investment advice and does not assure the availability of or your eligibility for any specific product offered, nor does this calculator predict or guarantee the actual results of any product. The terms and conditions of products offered will differ and may affect the results of the calculator. Please consult with qualified professionals to discuss your situation. The final APR may differ from the APR in the above results due to additional fees that may be applicable.
1Triple Advantage Savings Annual Percentage Yield (APY) is accurate as of 4/1/2025. The minimum amount to open an account is $100.00. Triple Advantage Savings Account Holders can earn the following Annual Percentage Yield (APY): 3.50% APY with Eligible AAA Membership and 3.15% APY without eligible AAA membership.* Deposit products are offered by Grasshopper Bank, N.A. Member FDIC.
2Triple Advantage Savings account holders with a monthly average balance of $25,000.00 or greater receive free outgoing domestic wire transfers. Triple Advantage Savings account holders with a monthly average balance of $24,999.99 or less will be charged a $10 fee for each domestic outgoing wire transfer.
3Triple Advantage Certificate of Deposit (CD) Annual Percentage Yield (APY) is accurate as of 4/14/2025. The minimum deposit to open an account is $500. 4.25% APY applies to a 6-month CD with balances of $500.00 and up. 4.20% APY applies to a 9-month CD with balances of $500.00 and up. 4.10% APY applies to a 12-month CD with balances of $500.00 and up. 3.95% APY applies to an 18-month CD with balances of $500.00 and up. 3.75% APY applies to a 24-month CD with balances of $500.00 and up. 3.50% APY applies to a 36, 48, and 60-month CD with balances of $500.00 and up. CDs are opened and interest begins on the day the funding deposit is received. The interest rate and APY are fixed for the term of the CD. The APY assumes interest remains on deposit until maturity. Withdrawal of interest before maturity will reduce earnings. A penalty may be imposed for early withdrawal. Fees may reduce earnings on the account. Deposit products are offered by Grasshopper Bank, N.A. Member FDIC.
Early Withdrawal Penalties
An early withdrawal penalty will apply if you withdraw funds before the maturity date. For terms of 6 to 12 months, the penalty is 90 days of interest. For terms of 13 to 60 months, the penalty is 180 days of interest. In accordance with Regulation D, a minimum penalty of 7 days’ simple interest will apply to withdrawals made within 6 days of deposit or within 6 days of a previous withdrawal.
4Triple Advantage Checking Annual Percentage Yield (APY) is accurate as of 4/1/2025. The minimum amount to open an account is $100.00. Triple Advantage Checking Account Holders can earn the following Annual Percentage Yield (APY): 1.00% APY with eligible AAA membership and 0.75% APY without eligible AAA membership.* Deposit products are offered by Grasshopper Bank, N.A. Member FDIC.
5Cash Back rewards offer 1.00% cash back on all qualified purchases made by eligible Triple Advantage Checking account holders with an eligible AAA membership.* To qualify for cash back, Triple Advantage Checking account holders must meet all requirements and a transaction must be deemed as a qualified purchase.
Qualified purchases are signature-based purchases made with a AAA Banking debit card from a Triple Advantage Checking Account. To make a signature-based purchase, select “credit” rather than debit at point-of-sale kiosks. The “credit” option is most often pre-selected when making purchases online using a debit card. Online subscription payments may not be considered signature-based purchases. The payment transaction type (signature-based or other) is ultimately decided by the merchant and how the transaction is transmitted to AAA Banking at the time of processing. AAA Banking reserves the right to determine if a transaction was a qualified purchase, and to establish additional types of qualified purchases that could be made available in a variety of ways. Any goods or services purchased with the debit card that are returned or otherwise credited to the account are not qualified purchases. Unlawful purchases and purchases of currency, cash or cash equivalents (including, without limitation, currency from the U.S. Mint, travelers cheques, gift cards, cryptocurrency, casino chips, peer-to-peer payments, prepaid debit cards, account openings, loan payments, or other cash equivalents) made with a debit card are not qualified purchases. Documentation may be required to validate that certain purchases are qualified purchases. If you or AAA Banking closes the account for any reason before the end of the statement cycle, you will forfeit all rewards accrued through your linked debit card during that statement cycle. The AAA Banking Visa® debit card is issued by Grasshopper Bank, N.A. pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa is accepted.
Important Tax Information
The value of this reward may constitute taxable income and may be reported to the Internal Revenue Service as miscellaneous income to the first signer on the account, in the year received, as required by applicable law. Offer is limited to clients who are citizens of the United States that furnish or have a valid Form W-9 on file and the account must not be subject to backup withholding. You may be issued an Internal Revenue Service Form 1099 (or other appropriate form) to you that reflects the value of such reward. Please consult your tax adviser, as AAA Banking does not provide tax advice.
*Eligible AAA Membership Definition: you must be a "Basic," "Plus," or "Premier" member of AAA - The Auto Club Group (ACG). ACG serves households in Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, New York, North Carolina, North Dakota, South Carolina, Tennessee and Wisconsin. Applicants must be 18+ and a U.S. resident. Other AAA memberships are not eligible.
AAA-Member Verification & Product Eligibility
By applying for a AAA Banking deposit account, you acknowledge and agree that if you select a AAA-member product, your AAA membership status with Auto Club Group (ACG) will be validated at the time of account opening and periodically thereafter. If your AAA membership cannot be validated or your membership status changes, your account may be moved to a non-member product with different terms, including but not limited to a lower Annual Percentage Yield (APY) and the removal of other AAA member-only benefits. If this occurs, you will receive a notification regarding the change in the product and applicable terms. If you believe your AAA Membership status was incorrectly validated or that you have been placed in the incorrect product, please contact us to review and correct your status.
‡Offer valid through 9/02/2025. Offer valid for Classic/Basic Memberships only. Pricing valid at member join only. Offer excludes Motorcycle coverage. Payment of full AAA Membership dues is required upon renewal. Offers, terms, conditions and restrictions apply and are subject to change without notice. Not combinable with any other offer. Offer not valid in FL, GA, MI or PR. A member can add one eligible family member for free for up to one year. Additional Associates are half price. Associate memberships are available to the Primary member’s spouse, one other adult living in the household, and their children living at the same residence or away at school. Associate members must have the same type of membership as their Primary member, with the exception of Motorcycle. Associate membership expires on the renewal date of Primary member.
Upon activation and with proper identification, AAA will provide regular AAA services and full privileges for the new member. Roadside benefits begin three days after payment of dues. Some restrictions apply. Roadside assistance is provided by independent facilities contracted by AAA. Coverage in taxis, limousines and other ride-sharing conveyances is excluded. Visit AAA.com/MemberHandbook for details about member benefits, including any limitations or restrictions. Offers, terms, conditions and policies are subject to change without notice. Savings partners subject to change. Source: 2023 AAA U.S. Market Track national surveys. Includes service vehicles owned by clubs and service vehicles owned by third parties under contract with AAA to provide services to AAA members. Taxes, fees & options excluded. Terms apply. Partners and offers are subject to change and restrictions apply. For a complete list of offers, visit us online at AAA.com/Save or your local AAA office.
