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Thursday, April 30

States with the Most Credit Cards in 2023

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By on Credit Cards
States with the Most Credit Cards in 2023

The average American has more than four open credit cards, according to WalletHub’s data. Exactly how many cards are manageable varies from person to person and state to state according to their spending habits, though. Having multiple cards in your wallet can help you boost your credit score if you use them responsibly, but they can also lead to the temptation to overspend.

To determine the states where credit card ownership is increasing the most, WalletHub analyzed our latest consumer-finance data across four key metrics. These metrics measured the average number of cards owned per person and average number of new cards opened per person in Q3 2023, as well as the percent change in both of those numbers from Q3 2022.

“Some people are able to effectively manage more credit card accounts than others. Having multiple credit cards in your wallet is actually good for your credit score if you pay on time and in full, keep your credit utilization low and wait at least six months between applications. The problem arises when people open new cards simply to overspend, as many people do during the holiday season. That can lead to unsustainable debt and credit score damage.”

Cassandra Happe, WalletHub Analyst

Main Findings

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States with the Most Credit Cards

Overall Rank State Total Score Number of Credit Cards Rank Increase in Number of Credit Cards Rank
1 Alaska 81.39 3 1
2 New Jersey 67.46 1 13
3 Nevada 67.09 2 4
4 Wyoming 64.32 28 2
5 Arkansas 62.87 8 3
6 Florida 56.68 7 10
7 Georgia 55.77 5 15
8 California 54.25 10 12
9 Arizona 54.17 9 14
10 Delaware 54.16 4 36
11 North Carolina 52.01 13 16
12 New York 51.01 6 35
13 New Mexico 50.78 24 5
14 North Dakota 50.51 19 9
15 Maryland 49.70 12 31
16 Texas 49.26 16 21
17 Tennessee 49.23 22 6
18 Virginia 48.89 11 40
19 Pennsylvania 48.84 15 24
20 Rhode Island 48.26 17 26
21 Missouri 47.49 29 8
22 New Hampshire 46.77 18 29
23 Massachusetts 46.74 20 23
24 Alabama 46.49 26 11
25 Minnesota 46.35 23 18
26 Louisiana 45.28 27 17
27 Connecticut 44.96 14 42
28 Ohio 44.27 30 20
29 West Virginia 43.39 21 33
30 South Carolina 42.34 25 34
31 Utah 42.14 42 7
32 Illinois 40.85 33 27
33 Indiana 40.04 36 25
34 Kansas 39.52 38 22
35 Colorado 39.42 32 38
36 Washington 39.30 35 28
37 Mississippi 38.07 40 30
38 Michigan 37.25 39 32
39 Oregon 36.11 46 19
40 Maine 35.86 41 41
41 South Dakota 35.04 31 48
42 Kentucky 34.85 37 44
43 Wisconsin 33.53 43 37
44 Hawaii 33.05 34 47
45 Oklahoma 31.43 48 39
46 Vermont 29.96 44 45
47 Idaho 28.18 47 46
48 Montana 27.63 49 43
49 Nebraska 19.31 45 49
50 Iowa 6.18 50 50

Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the best conditions for that metric category.

In-Depth Look at the States with the Most Credit Cards

Alaska

Alaska ranks first in part because the average number of credit cards owned by its residents increased by 8.5% in the last year, more than in any other state. Alaskans also opened 5.44% more new credit cards in Q3 2023 than they did in Q3 2022. In comparison, residents of most states decreased the number of new cards opened during Q3 2023.

The big question is whether Alaskans are using their new cards primarily for credit building, rewards and responsible financing or to spend beyond their means. At first glance, it may seem like the latter, since Alaska residents have the second-highest average credit card debt overall. However, Alaska is only around the middle of the pack when it comes to the share of people in financial distress, and its residents have good credit, on average. Therefore, it seems like they can handle the large number of cards, for the moment at least.

New Jersey

New Jersey residents actually own more credit cards per person (nearly 6) than people in any other state. However, New Jerseyans have slowed down on opening cards, and they opened 4% fewer new cards during Q3 compared to Q3 2022. This could potentially be because many residents have already opened as many cards as they can handle.

Given that New Jerseyans have a high number of credit cards, it’s unsurprising that they also have one of the highest household credit card debt levels in the country.

Nevada

Nevada ranks third overall and it is one of the few states where people own more than 5 credit cards on average (5.4). Residents added credit cards at a faster rate than people in any other state during the past year, too, with the average number of cards per person increasing by 6.8%. However, Nevada residents have also slowed down a bit lately, opening 3.2% fewer new cards during Q3 2023 compared to Q3 2022. Since card opening was concentrated in the first half of the year, it’s possible some Nevadans struggled with extra debt after the last holiday season.

Nevada residents have among the highest average household credit card debt in the country, at $8,891, and that debt is increasing at a high rate. It seems that this debt has become difficult to manage for many people, too, given that many Nevadans are experiencing financial distress.

Tips for Managing Multiple Credit Cards Responsibly

  • Never open a card to spend beyond your means: When acquiring a new credit card, make an effort to only charge what you can comfortably pay in full each month, or at least manage with affordable monthly payments. An exception applies to cards with extended 0% introductory APRs, which are suitable for financing purchases that aren’t immediately affordable. However, it’s crucial to use them only if you can pay off most or all of the balance during the promotional period.
  • Wait at least six months between applications: Each application triggers a hard pull on your credit report, resulting in a minor credit score drop (typically around 5-10 points). Applying for multiple cards within a short time frame can compound this effect, prolonging the time needed for your score to recover.
  • Ask for credit limit increases: If you need to increase your spending capacity, and can afford to spend more, consider asking for a credit limit increase on an existing credit card. This may be a simpler process compared to applying for an entirely new account. While there is still a chance of a hard inquiry, you won’t have the added complexity of managing separate payments on a new card.
  • Use different credit cards for different things: Employ the “island approach” by strategically using various credit cards for different purposes. For instance, you could assign one card for 0% financing, another for cash back rewards on everyday purchases, and another for travel expenses. When managing multiple credit cards, it’s advantageous for each card to offer distinct benefits.
  • Set up automatic payments: Simplify the monthly payment process by setting up automatic payments from a checking account. This eliminates the risk of forgetting to make payments, especially when managing multiple credit cards, as long as there is a sufficient balance in the account.

Methodology

In order to determine the states with the most credit cards, WalletHub compared the 50 states across two key dimensions: 1) Number of Cards and 2) Increase in Number of Credit Cards.

We evaluated those dimensions using 4 relevant metrics listed below with their corresponding weights, each metric being graded on a 100-point scale.

Finally, we determined each state’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.

Number of Credit Cards – Total Points: 50

  • Average Credit Cards Opened in Q3 2023: Full Weight (~25.00 Points)
  • Average Credit Cards Owned in Q3 2023: Full Weight (~25.00 Points)

Increase in Number of Credit Cards – Total Points: 50

  • % Change in Average New Credit Cards Opened (Q3 2023 vs. Q3 2022): Full Weight (~25.00 Points)
  • % Change in Average Credit Cards Owned (Q3 2023 vs. Q3 2022): Full Weight (~25.00 Points)

 
Sources: Data used to create this ranking were collected as of November 30, 2023 from WalletHub database.

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