(NewsNation) — Most American adults own at least one credit card, and paying with one is the most common form of payment. The average person owns nearly four credit cards, according to Experian. Is that too many? How many credit cards should I have? There isn't a formula to determine the "right" number of credit cards a person should have, but there are some pros and cons to having more or fewer. Older people tend to have more credit cards than younger people, according to data collected by Experian, one of the three major credit reporting bureaus. Gen Z consumers have two on average, while baby boomers have twice as many. People living in populous areas also tend to have more credit cards than those who live in smaller population centers. A person should consider their unique financial situation to determine how beneficial a new card might be. Americans in these US cities have the most debt Can you have too many credit cards? Building credit starts with opening a line of credit, either through a credit card or a loan. The more accounts you have in good standing, the easier it is for credit scoring models to issue you a score and make you attractive to lenders. The key phrase is “in good standing.” In other words, each account should carry a low monthly balance, and you must make your payments on time. Having fewer than five credit accounts can make you less attractive to lenders, according to NerdWallet. At the same time, having too many credit accounts may make it harder to make on-time payments, which will negatively impact your credit score. Having more accounts could help you build credit as long as you're diligent with payments and you're aware of your ability to comfortably manage the accounts. According to Experian, "Organized consumers can benefit greatly from a wallet full of specialized cards, but for those seeking a more zen-like financial future, some judicial pruning may be in order." What happens to a person’s debt when they die? Impact on credit score Credit scores impact your ability to apply for a new credit card, car loan or home. The number of credit cards you own does not directly impact your credit score, but missing payments because you can't pay all of them will. With each card comes a credit limit. The higher the amount of credit you've used, or "credit utilization," the harsher impact it has on your credit score. Let's say your card has a limit of $10,000 and your balance is $8,000. That's an 80% credit utilization ratio. Experts recommend keeping your credit utilization below 30% (less than $3,000 if your credit limit is $10,000, for example). Making payments on existing accounts is critical to your credit score health. Experts recommend spacing out credit applications about six months apart. When you apply for a credit card or loan, that qualifies as a “hard inquiry” on your credit, which can affect your score. According to NerdWallet, “Applying for multiple credit cards in a short period of time can be interpreted as a sign of credit risk, and all those hard inquiries add up.”