​​Nearly a Quarter of Americans Want More Credit Cards. Here's Why

What's the magic number when it comes to credit cards? That largely depends on the person. A recent credit card study by The Motley Fool Ascent found that most Americans have one or two cards. But not everyone is completely satisfied with how many they have.

Nearly a quarter (23%) of respondents said they think they should have more credit cards. This was more common with younger generations, as 35% of Generation Z and 29% of millennials wanted more cards.

If you're going to get a new credit card, it's important to have a good reason why. However, some of the reasons people gave for wanting more cards could backfire on them. Here's why 23% of Americans want more credit cards, and if you should get a new card for these reasons.

45% want to improve their credit score

The most common reason people want more credit cards is raising that all-important credit score. Does having more cards help your score? The answer is a little complicated.

The number of credit cards you have isn't a part of your credit score. But there are ways that new cards can impact your score, with the most significant being your credit utilization ratio.

Your credit utilization is the portion of your credit that you're using. It accounts for 30% of your FICO® Score (the type of score most widely used by lenders). If you have one card with a $5,000 limit and a $2,500 balance, then your credit utilization is 50%. That's on the high side. It's recommended that you keep your credit utilization below 30%, so using 50% of your credit limit will typically hurt your credit score.

If you were to open another card with a $5,000 credit limit, you'd have $10,000 in credit. The same $2,500 balance now only results in a credit utilization of 25%. Your credit score would most likely increase if you brought it down this way.

There are also a couple of ways getting a new credit card can have a small negative impact on your credit:

• It reduces your average credit account age. This isn't a major scoring criteria -- it only accounts for 15% of your FICO® Score.
• New credit applications can lower your credit score. Once again, these aren't a major scoring criteria. They account for just 10% of your FICO® Score, and a single application takes less than five points off most consumers' scores.

30% want to be able to spend more and have more credit

Some people want to boost their buying power. This is where credit cards can become dangerous.

Now, there's nothing wrong with wanting more credit to cover everyday expenses. If your only credit card has a $500 or $1,000 limit, then getting another card makes sense. You don't want to be constantly worrying about maxing out your credit card and not being able to use it.

With another card, you'll have some more breathing room. It will also help you keep your credit utilization lower. As we went over above, that's good for your credit score. Keep in mind that if you have a card with a low credit limit, you can also ask for a credit limit increase instead of applying for a whole new card.

Where people get into trouble with credit cards is spending more than they can afford. No matter how much you can spend, the best approach is to pay your full credit card bill every month. That means only charging what you can afford to pay back.

25% want to better maximize rewards

There's also a sizable portion of consumers who want more cards to earn more rewards. This is a great reason, because there are a few ways having more cards helps you with that:

• You can earn more welcome offers. Many credit cards have lucrative welcome offers where you can earn bonus points or cash back. These are often the fastest way to earn rewards.
• You can earn bonus rewards in more spending categories. Many rewards credit cards earn bonuses in certain areas, such as groceries, gas, or dining. By getting more rewards cards, you can earn bonus rewards in more areas.

You still need to be careful not to overspend. If you can't pay off your card's full balance every month, you'll be charged credit card interest. Interest charges will usually cost you much more than you make in rewards. If you consistently pay off your credit cards, then having multiple rewards cards can be beneficial.

There's nothing wrong with getting more credit cards if you think it will benefit you financially. Regardless of how many credit cards you have, the key is how you use them.