Back to learn

Does having two credit cards build credit faster?

3 min read

credit cards to build credit

Written By

Jack Hauen

Credit scores play a vital role in our financial lives. A simple way to build credit is by paying off your credit card bill on time every month. So wouldn’t it stand to reason that a quicker way to build credit would be to pay off two credit cards?

As we’ll explore in this article, it’s not that simple. But it could be the case that holding two credit cards could pay off in terms of credit building, if you’re disciplined with your financial habits.

What Is A Credit Score?

Simply put, a credit score is a three-digit number that represents your creditworthiness. It is a reflection of your credit history, including your payment history, outstanding balances, and credit utilization.

Credit scores typically range from poor to excellent, with poor scores indicating a higher risk for lenders and excellent scores representing a lower risk.

These scores can have far-reaching implications in our lives, from determining our ability to buy a home or get a good rate on loans and credit cards, to even renting an apartment.

Therefore, it is crucial to understand how credit scores work and how to build and maintain a good score over time.

Is It Good to Have Multiple Credit Cards?

The answer ultimately depends on various factors and personal financial habits.

One advantage of having multiple credit cards is the increased total credit limit. This can provide a buffer in case of emergencies and can also lead to a higher credit score if utilized responsibly.

Moreover, different credit cards offer unique benefits and rewards, allowing you to tailor your spending and maximize your rewards.

On the other hand, having multiple credit cards can also increase the risk of overspending and falling into debt.

It requires discipline and self-control to manage multiple credit cards effectively, ensuring that payments are made on time and balances are kept low.

How Many Credit Cards Should I Have?

Determining the ideal number of credit cards for an individual depends on their financial discipline and needs.

While some individuals may successfully manage multiple credit cards, others may find it challenging to do so.

Guidelines can help in making this decision. A stable income, the ability to pay off the balance in full each month, and efficient tracking of spending are all factors that indicate a person's readiness for multiple credit cards.

However, it's important to remember that responsibility and management skills are crucial with every additional card to avoid getting overwhelmed or falling into debt.

The Canadian Bankers Association reported that 76.2 million Visa and MasterCard cards were in circulation in Canada in 2021, which works out to an average of almost exactly two credit cards per person — but that doesn’t take into account other cards, like American Express or KOHO prepaid cards.

Does Getting More Credit Cards Affect Your Credit Score?

Getting more credit cards can have both immediate and long-term effects on your credit score.

Initially, when you apply for a new card, a hard inquiry is made on your credit report, which can cause a temporary dip in your score. However, this impact is typically minor and fades over time.

In the long run, having more credit cards can actually improve your credit score. This is because of the concept of credit utilization, which is the ratio of your credit card balances to your credit limits.

Having more credit cards increases your available credit and, if you maintain low balances, lowers your credit utilization ratio. This can have a positive impact on your credit score and demonstrate responsible credit behavior.

How KOHO Can Help

If you're looking to build or improve your credit score, consider the KOHO Credit Building program — an excellent tool for your credit-building journey. Unlike regular credit cards, KOHO’s credit cards offers unique features designed specifically to help build credit.

If you're ready to take control of your credit and embark on a journey of building a strong financial foundation, why wait? Visit our website today and start your credit-building journey with the KOHO Credit Building card. Your credit score will thank you!

Final Thoughts

Understanding credit scores and the impact they have on our financial lives is crucial. While having multiple credit cards can offer benefits, it's important to approach them with responsibility and caution.

By assessing your financial discipline and needs, you can determine the appropriate number of credit cards for yourself. Furthermore, getting more credit cards can positively impact your credit score in the long run if used wisely.

Note: KOHO product information and/or features may have been updated since this blog post was published. Please refer to our KOHO Plans page for our most up to date account information!


AboutAffiliatesCareersCommunity DiscountsCultureEnterpriseLearnNewcomersTravelStatusStudent & Graduate Discounts


The KOHO Mastercard® Prepaid card is issued by KOHO Financial Inc. pursuant to license by Mastercard International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

By using this website, you accept our Terms and Conditions. Follow these links for more information on our Privacy Policy and Accessibility Policy. © 2024 KOHO Financial Inc.