How Many Lines Of Credit Should You Maintain? 7 Considerations

Credit lines are an integral part of maintaining a healthy credit portfolio. It doesn’t matter if you have access to a wide array of loan options or the best credit card in the Philippines for starters – you can use them all to improve your credit options. By tapping into your credit lines wisely, you can build your credit history and increase your credit score, making it possible for you to access better loan and credit terms. 

However, more doesn’t always mean better. At the moment, you might even be wondering if you have too many or too few lines of credit, and whether you’re using these financial channels efficiently. So, before you start adding to or subtracting from your credit portfolio, it’s important to understand what you can reasonably sustain. Below are key considerations to help you decide how many credit lines should make up your financial toolkit.

Your Ability to Manage Multiple Accounts

Each credit line comes with its own terms, payment schedule, and due dates. If you’re confident in your ability to track the details of multiple accounts, then having several credit lines can work in your favor. But if you find yourself forgetting due dates or juggling payments, it might be better to keep things simple.

The risk of missed payments increases when you have too many accounts to monitor. Late payments don’t just cost you extra money in fees and interest; they can also negatively impact your credit score. It’s practical to start with a smaller, more manageable array of credit lines, then gradually expand only if you’re sure you can keep up.

Your Spending Habits

Credit can be a helpful tool, but it can also be a trap if you’re not careful with the way you use it. If having more credit lines tempts you to spend beyond your means, you could quickly find yourself buried in debt. It’s best to reflect on your credit line management habits. For starters, you can ask yourself the following questions:

• Do I tend to carry balances month to month?
• Have I ever maxed out a credit card?
• Do I shop more just because you have available credit?

If you answered yes to any of these, limiting your credit lines can help keep your finances in check.

Credit Utilization Ratio

Your credit utilization ratio is one of the factors that affect your credit score. This figure refers to how much credit you’re using compared to how much you have available. A lower ratio is better for your score, ideally at or below 30%.

For example, if you have a total credit limit of ₱100,000 and your combined balances are ₱20,000, your utilization is 20%. If you open a new credit card with a ₱50,000 limit and don’t use it, your utilization will drop to about 13%, which can help improve your score. It’s worth noting, however, that this strategy only works if you don’t increase your spending. More credit limits only help your utilization if you continue to manage your balances responsibly.

Your Credit History

If you’re new to credit, it’s best to pace yourself. Opening several accounts at once can lower your average account age, which may temporarily hurt your credit score. It can also look risky to lenders if you seem to be seeking a lot of credit in a short period.

On the flip side, if you’ve had accounts for years and built up a solid payment history, you’re in a better position to manage additional lines. Just make sure that any new account you open adds real value to your credit portfolio, whether it’s through lower interest rates, better rewards, or added flexibility.

Types of Credit You Have

Lenders like to see a healthy mix of credit types, so if you’re expanding your credit portfolio, it’s smart to check out different lines of credit. That means having both revolving credit (like credit cards or virtual credit lines like Maya Easy Credit) and installment credit (like car loans or personal loans). But this doesn’t mean you need to take out a loan just for the sake of variety. If your current mix is already balanced and you’re managing it well, there’s no need to add more accounts. Simply focus on handling what you have rather than chasing credit diversity.

Your Financial Goals

Your financial objectives should guide your decision and help you arrive at a practical resolution. So ask yourself: why are you thinking about adding another credit line in the first place? 

Some reasons to consider a new line of credit include:

• You want to transfer a high-interest balance to a lower-rate card.
• You’re planning a major purchase and need the flexibility.
• You’re trying to build your credit with responsible use.

If your reason doesn’t directly support a financial goal, you might want to hold off. Opening a new account just because it’s available—or because of a flashy promotion—can lead to unnecessary debt.

Impact of Credit Inquiries

Every time you apply for a new credit line, a hard inquiry is added to your credit report. A single inquiry isn’t a big deal, but multiple applications in a short period can signal financial stress to lenders and may reduce your credit score slightly.

As such, before applying for a new line of credit, consider if the benefits outweigh the potential impact on your credit report. Spacing out your applications and only applying when necessary helps keep a strong credit profile.

There’s no one-size-fits-all answer to how many lines of credit you should maintain. What matters most is how well you manage the credit you have, not how many accounts you can open. By thinking carefully about your habits, goals, and capacity to handle financial responsibility, you can build a credit portfolio that works for you, not against you. Use credit as a tool, not a crutch, and let your financial choices reflect what’s best for your long-term stability.