Multiple Credit Cards Alone Won't Boost Your Score, Experts Warn

Holding three or more credit cards with a substantial combined credit limit does not guarantee an improved credit score, financial advisors say. The common misconception that accumulating multiple cards with higher limits will boost creditworthiness overlooks the critical factors that actually determine credit ratings.

Credit scoring agencies evaluate borrowers based on their credit utilisation ratio—the proportion of available credit that is actually used—and payment behaviour. A combined credit limit of Rs 5 lakh remains irrelevant to credit health unless a cardholder's spending and repayment patterns demonstrate financial responsibility.

Experts emphasize that timely repayment of dues is paramount. Defaulting on even a single card or carrying high balances across multiple cards can damage a credit score significantly, regardless of the total available credit. Similarly, having unused cards with high limits does not contribute positively to credit assessment.

Financial advisors recommend cardholders maintain a low credit utilisation ratio—typically below 30 percent of available credit—across all cards combined and ensure all payments are made by their due dates. These practices build a strong credit profile more effectively than accumulating cards or limits.