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Do you know the total number of credit cards a person can hold? Are there any RBI regulations regarding this? Let’s find out.

Nowadays, it is common for a single individual to hold multiple credit cards from different banks. Some cards are used for general shopping, while others offer discounts on travel and dining. Consequently, many people prefer to keep more than one credit card. But the question remains: what is the maximum number of credit cards a person can hold? Does the RBI have any rules about this? Let’s understand the details here.

What are the RBI's rules?

Simply put, the RBI has not set a limit on the number of credit cards a person can hold. In other words, there is no rule stating that an individual can possess only two, three, or four credit cards. However, this does not mean that banks will issue you as many cards as you desire. Before issuing a card, banks evaluate factors such as the customer's salary, repayment history, and existing debt obligations.

What do banks consider when issuing cards?

Suppose you already hold three credit cards with a combined limit of ₹5 lakh. If you apply for a fourth card, the bank will thoroughly review your details.

How should the credit limit be utilized?

Let’s assume you have four cards with a total limit of ₹4 lakh. This does not mean you are obligated to spend the entire ₹4 lakh. You should only use an amount that you can comfortably repay each month. It is worth noting that if the full credit card bill is not paid on time, interest and additional fees are charged on the outstanding balance.

Does holding multiple cards negatively affect your credit score?

Merely holding multiple credit cards does not automatically damage your credit score. Your score is influenced by how you use the cards and whether or not you make timely repayments.