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In general, there’s no “right” number of credit cards to have. Some might suggest having at least two credit cards, preferably from different networks — say, a Visa and an American Express, or a Mastercard and a Discover card — and strategically choosing them for the best combination of rewards. Others will recommend making this determination based on how many credit cards you can effectively handle, or how many is optimal for your credit score.

At the end of the day, the ideal number of credit cards depends on your personal financial situation. Learn more about how many credit cards you should have, and whether it will be good for you to have multiple credit cards.

How Many Credit Cards Does the Average Person Have?

Cardholders in the U.S. have an average of 3.9 credit card accounts, according to a review of national credit card data by the credit bureau Experian®.

The data also found that the number of credit cards someone has tends to increase the older they get. For instance, Baby Boomers (ages 59-77 currently) and Gen Xers (currently ages 43-58) held an average of 4.3 credit cards, whereas Millennials (ages 27-42 currently) had just 3.5 credit cards on average.

How Many Credit Cards Are Too Many?

There isn’t a set number of credit cards that tips you over into the territory of having “too many.” As long as you can stay on top of all of your accounts and manage them responsibly, having a number of credit cards won’t negatively affect your credit.

That being said, even just two credit cards could be too many if it becomes challenging for you to remember to make on-time payments on both accounts or you’re overspending. The more credit cards you have, the more credit card terms you’ll have to keep track of, which can get complicated. You may also run into paying multiple annual fees, and costs can add up quickly there — especially if you’re not using a credit card enough to justify the cost.

Even if you do think you can manage having multiple credit cards, you’ll want to watch out for applying for too many new cards within a short window of time. Doing so can lower your credit score temporarily, and that in turn could raise a red flag for lenders. Issuers have even begun to introduce rules to prevent cardholders from attempting credit card churning, which is when you repeatedly open and close credit cards to earn welcome bonuses.

Does Having Too Many Credit Cards Affect Your Credit Score?

Having multiple credit cards can either help build or hurt your credit score, depending on how responsibly you use your cards and how well you understand how credit cards work. However, if you’re in a situation where you’re starting to feel like you have too many credit cards, this could lead to negative effects on your credit score.

Multiple credit cards mean multiple due dates to juggle, which can make it easier to miss payments or make them late. Because payment history accounts for 35% of your FICO® score, this can have big implications for your credit.

Secondly, opening a number of new accounts can lower the average age of your credit, which matters since credit history length accounts for 15% of your score. Applying for a credit card also requires a hard inquiry, which can temporarily ding your score.

On the flipside, having multiple credit cards does offer you more access to credit. If you don’t increase your current outstanding balances, this could positively impact your credit utilization rate, which compares your outstanding balances to your total credit limit. Further, a new credit card could benefit your credit mix, which comprises 10% of your FICO score.

Recommended: When Are Credit Card Payments Due?

Potential Reasons to Apply for Another Credit Card

Trying to figure out what is a good amount of credit cards to have? Here are some potential reasons you might consider applying for an additional card.

Potentially Raise Your Credit Score

Getting an additional card can help build your credit. This might be the case if your newly opened card increases your overall credit limit. If you keep your total credit card balances the same, your higher limit will lower your credit utilization rate, which is one of the factors that affect your credit score.

Other ways that getting another credit card can have a positive impact on your credit is if the new card adds to your existing credit mix and if you consistently make on-time payments.

Maximize Rewards

Perhaps the top reason that people open multiple credit cards is to maximize the rewards they can earn. For instance, another card might be worth adding to your arsenal if it optimizes rewards in a category in which you don’t currently earn much. Or, for example, you might pair a basic cash-back rewards credit card for your everyday spending with a travel rewards card that can help you cover the cost of flights and enjoy perks while traveling.

Ensure You Can Pay If One Card Is Lost or Stolen

Having more than one credit card in your wallet can also act as an insurance policy of sorts. Say one of your cards gets stolen or is unexpectedly frozen due to fraudulent activity. That can leave you in a lurch at checkout if you don’t have any cash on you. By applying for an additional credit card, you’ll ensure that you always have a backup in case anything were to happen.

Pay Off a High-Interest Card with a Balance Transfer

You also might opt for an additional credit card if you have debt to pay off and qualify for a 0% APR introductory offer. These promotional offers allow you to move over a balance and pay it off interest-free within a certain period of time.

Just keep in mind that you’ll usually need solid credit to qualify for these offers, and a balance transfer fee will apply. Other pros and cons of no-interest credit cards include the fact that you’ll likely want to ensure you can pay off your debt before the promo offer ends — and a higher interest rate kicks in.

Secure a Higher Overall Credit Limit

Another possible benefit of opening an additional credit card account is that doing so can increase your available credit limit. Even if this card’s credit limit isn’t that different from those of your other cards, adding another card can help you keep your credit utilization rate from getting too high, as your overall credit limit will go up.

Recommended: What Is the Average Credit Card Limit?

Potential Drawbacks of Getting Another Credit Card

As mentioned, opening multiple credit cards within a short period of time can lower your credit score. But even if you don’t do that, there are possible issues that can arise when you have multiple cards — in other words, it isn’t always better to have more credit cards.

Potential to Lower Credit Score

Perhaps the biggest potential issue of having multiple credit cards is the possibility of harming your credit score. If you’re missing payments because you’re finding it hard to juggle multiple due dates, or are overspending and driving up your credit utilization ratio, your credit score will likely suffer.

Plus, even if you’ve paid off your accounts, having a large number of credit cards open can make you look risky to lenders, possibly lowering your score.

Fees

Another possible downside to having a number of credit cards is the fees you could face. Depending on the credit cards you have, you could end up paying multiple annual fees. These could become harder to manage. You might have a harder time keeping track of which cards charge which fees. This can make it more challenging to dodge unnecessary fees.

Harder To Keep Track Of

It’s likely that all of your credit cards could start off with a different due date, which can make it that much easier for a payment to slip through the cracks. Plus, you’ll have multiple different websites or mobile apps to check in on and visit in order to make your payment.

To make it easier on yourself, consider automating your payments or changing your due dates so they all fall on the same day. This can make it easier to adhere to one of the cardinal credit card rules of always making on-time payments.

Could Get Into a Cycle of Debt

When you have an array of credit cards in your wallet to choose from, it can feel easy to keep swiping. Plus, by using a number of different cards, you’ll be spreading your charges out, which can make it more challenging to track how much you’re actually spending in total.

To keep your spending in check, don’t spend more on your credit cards than you can actually afford to pay off in cash. Ideally, you’ll be able to pay off all of your credit card balances in full each month. Otherwise, interest charges can add up quickly, which is one of the reasons why credit card debt is hard to pay off.

More Difficult to Spot Fraudulent Activity

When you have just one credit card, checking your credit card balance regularly is pretty easy to do. But once you start growing your number of cards, it will take more legwork and effort to stay on top of your statements and check for any suspicious charges. This can make it harder to spot any potentially fraudulent activity and report it in a timely manner.

Determining How Many Credit Cards to Have

Now that you know the potential upsides and drawbacks to having multiple credit cards, you’re left with the question: How many credit accounts should I have? As mentioned before, the ideal number of credit cards varies from person to person. Here’s what to consider as you make this determination for yourself:

•   Do you have a history of responsible spending? If you think that applying for another credit card will lead to spending beyond your means, you might be better off skipping an additional card.

•   What’s your reason for getting another card? Opening up another card can help you maximize rewards, increase your purchasing power, or even assist in building credit. However, if you’re seeking another card because you’re low on funds and want to be able to fund more purchases, that could lead to a cycle of debt.

•   Are you confident you’ll be able to pay off your balances in full each month? Credit card interest can add up quickly if you’re not paying off your balances in full on a monthly basis (just check out our credit card interest calculator for proof). Before taking on an additional credit card, ensure you’re in a good financial position to pay off your balances regularly and in full.

•   Have you built your credit score since you last applied? A better credit score generally translates to better rates and rewards and higher credit limits. To make applying for a new card worth your while, it generally helps if you’ve done work to positively impact your credit since you last applied.

•   Do you have any other upcoming loan applications? If you know you’ll need to apply for a loan — whether that’s a car loan, a personal loan, or a mortgage — consider whether a credit card application is necessary right now. Applying triggers in a hard inquiry, which temporarily dings your score, making you a potentially less competitive applicant for the loan you need.

Recommended: Tips for Using a Credit Card Responsibly

The Takeaway

How many credit cards you should have largely depends on your personal financial situation and how many credit cards you feel you can responsibly manage. In the big scheme of things, how you use your credit cards may be more important than how many you have. To determine the ideal number of credit cards for you, you’ll want to weigh the pros and cons of adding another card to your wallet.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Is 5 credit cards too many?

The answer is: It depends. Five credit cards is not too many if you are managing your debt responsibly, paying on time, and not being overwhelmed by interest charges. If, however, you are having trouble handling the debt and the various balances and due dates, those could be signs that five cards are too many for you.

How many cards should I have for good credit?

There is no specific number of cards you need to have for good credit. What can be most important is to manage your cards wisely and not have your debt go too high nor your credit score too low while using them. Some financial experts recommended having several cards ideally so that your credit file isn’t too thin. 

Does canceling a credit card help or harm your credit?

Canceling a credit card could harm your credit score. It could reduce the length of your credit history, which is a negative, as well as lower your overall credit limit and therefore potentially decrease your score. If you have a card you don’t use often, you might keep it open and use it occasionally, once every few months, to avoid these potential issues.

Photo credit: iStock/Drs Producoes

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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Paying interest can be a fact of life for many credit cardholders. In most cases, carrying a balance month to month on a credit card will trigger interest charges, which is essentially the cost of borrowing money from a credit card company. Compared to other types of debt, such as mortgages and car loans, credit cards tend to have higher rates of interest, which can make them an expensive way to borrow money.

For example, while credit card APRs can range from 15% to 25% or higher, the average car loan interest rate is often much lower, providing a more cost-effective borrowing option for those making large purchases like vehicles.

One thing that people who use credit cards to their advantage have in common? They know how to avoid paying interest on credit cards. You can learn how, too. Here are some ways you might avoid interest on credit cards.

What’s an APR?

To understand how to avoid paying interest on credit cards, it helps to start by learning about credit card APR, or annual percentage rate. Basically, the APR is the rate of interest you’ll pay if you carry a credit card balance. Unlike the APR for other loan products, the APR for a credit card does not include any fees you may owe for using the card — it’s simply your interest rate.

Your APR on a credit card will depend on your creditworthiness as well as the current prime rate. Generally, borrowers with better credit will have better credit card APRs, meaning they may fall below the average credit card interest rate.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score?

When Is Interest Charged?

Credit card interest is charged if you don’t pay off your balance in full each month. If cardholders pay their entire statement balance by their due date, interest charges are typically waived.

When you carry a balance, interest accrues on a daily basis. Your daily interest charge is determined by dividing your APR by 365, the number of days in the year. Then, at the end of each day, the interest is calculated based on your average daily balance. Because this continues throughout the billing cycle, the interest you’re charged yesterday then becomes part of the balance on which interest is charged today.

Your lender will then tally up all of your daily interest charges at the end of the month and put that amount onto your card as a finance charge.

Recommended: When Are Credit Card Payments Due?

How to Avoid Interest on a Credit Card

There are several strategies you can use to help avoid credit card interest.

Pay Off Your Balance in Full

If you’re wondering how to avoid credit card interest, one of the easiest methods is simply paying off your credit card balance in full each month. So long as you don’t carry a balance from month to month, you should never face purchase interest charges on credit cards.

To make paying off your full balance easier to do, you might consider making multiple payments throughout the month. That way, you don’t have to fork over one lump sum on your statement due date. One technique to consider is what’s known as the 15/3 credit card payment method.

Or, you could plan to check in on your balance regularly to ensure you’re going to be able to pay it off in full. The other benefit of paying off your full balance each month is that it can help you to build credit over time.

Take Advantage of Your Grace Period

Paying off a credit card in full each month creates an additional opportunity to avoid interest on a credit card. To help avoid paying interest, you can take advantage of your card’s grace period, the stretch of time between the end of your billing cycle and when a payment is due. During this time, no interest is charged on new purchases.

Here’s a hypothetical example:

•   A cardholder’s billing cycle for the month ends on January 15.

•   Say the cardholder pays their credit card bill on February 10. On February 10, they are only required to pay the “statement amount,” which includes only the purchases made from December 15 to January 15.

•   However, the grace period applies to any purchases that are made after January 15, but that won’t technically require payment until March 10. 

•   In this way, a purchase could remain interest-free for longer than just one billing cycle.

Credit card issuers aren’t required to offer a grace period, but plenty do. However, many require the balance to be paid off in full during the previous one or two billing cycles to qualify. If you lose your grace period because you haven’t paid your balance in full, you’ll be charged interest on any unpaid portion of the balance. In addition, you’ll lose your grace period, and all new purchases will accrue interest beginning from the date the purchase is made.

Utilizing the grace period to its full extent is one way to avoid paying interest on a purchase for longer than just one month (or whatever the billing cycle happens to be). Before going this route, just make sure your card has a grace period, and second, that you qualify. If you have questions, never hesitate to call your credit card issuer to ask how and when you’re billed.

Recommended: Tips for Using a Credit Card Responsibly

Use a Balance Transfer Offer or 0% Interest Credit Card

A balance transfer credit card, or a credit card that temporarily offers a 0% APR (or a very low rate), could be an enticing option for those who want to make major headway toward paying down a credit card balance. Keep in mind, however, that good credit (meaning a score of 670+) is typically needed to qualify for these offers.

If this is an approach you’re interested in, calculate how much you’d need to pay off each month in order to eradicate your balance. For example, if you have $6,000 you want to pay off during a 12-month 0% offer, you’d need to pay $500 each month. You’ll want to make sure you can realistically pay off the full balance before the promotion ends and the standard higher APR kicks in.

Also note that many balance transfers carry a balance transfer fee, which is usually around 3% to 5%of the amount transferred. Using our example from above, a $6,000 balance transfer with a 3% balance transfer fee would cost $180. Generally, this amount is added to the card’s total outstanding balance. Before pulling the trigger and transferring a balance, analyze how much you’d save in interest compared to the cost of the balance transfer fee.

There are a couple other potential pitfalls to balance transfers to keep in mind as well. For one, a balance transfer won’t get to the bottom of why you’ve racked up credit card debt in the first place. Some might find it too tempting to keep spending, and if more spending were to occur on top of the balance transfer, it could lead to unwanted interest charges. This could make it even harder to escape high-interest credit card debt.

Avoid Overspending

This may sound obvious, but it’s worth mentioning: To put yourself in a position where you can pay off your credit card balances every month, make sure your monthly spending doesn’t exceed your income.

This is easier said than done sometimes, but once you start racking up credit card interest, it can become even harder to pay off your full balance. You might consider making a budget and then vowing to stick to it to ensure you stay on track with your spending each month.

Plan Out Major Purchases

On a similar note to budgeting, another method for how to avoid paying interest on credit cards is by planning ahead for big purchases. If you know you have a pricey purchase coming up that you may need to spread out in smaller payments across a period of time, be strategic about how you’ll do it.

This could mean simply saving up ahead of time until you have enough stashed up to promptly pay off your balance. Or, you might time opening a credit card with a 0% promotional APR with completing your major purchase.

Tips for Reducing Interest

Sometimes you can’t avoid interest entirely. Even in those instances, you shouldn’t give up entirely and give into interest. Here are some tips for reducing the amount of interest you pay.

Taking Out a Personal Loan

Though not an interest-free option, there are other ways to potentially lower how much you’re paying in interest on your credit card debt. One such option is taking out a debt consolidation loan that has a lower rate of interest.

A debt consolidation loan allows you to roll your debts into one monthly payment that’s a set amount and stretched over a predetermined amount of time. This can make budgeting easier. Plus, if you manage to secure a lower interest rate, you might be able to pay off your debt faster, thanks to saving money on interest.

Making Multiple Payments Each Month

Another tactic to reduce the amount of interest you pay is to make payments on your credit card balance throughout the month, instead of waiting until the due date, as mentioned above. This helps because credit card interest is calculated on a daily basis, based on your average daily account balance. If you lower your balance with more frequent payments throughout the month, your average daily balance will be lower, thus reducing the amount of interest you’re charged.

Trying the Debt Avalanche Method

If you find yourself staring down a mountain of debt, you might consider trying a popular debt payoff strategy: the debt avalanche. With this approach, you focus on paying off your debt with the highest interest rate first. Over the long run, this can save you on interest.

The debt avalanche method instructs that you apply any extra funds to your highest-interest debt, while maintaining minimum monthly payments on your other debts. Then, once that debt is paid off, you’ll move your focus to paying down your debt with the second-highest interest rate.

The Takeaway

There are several ways to not pay interest on a credit card. These range from paying your balance off in full each month to taking advantage of a 0% APR offer. And even if you can’t avoid interest entirely, there are ways to reduce the amount of interest you pay on a balance you’ve accrued.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

What is the best strategy to avoid paying interest on your credit card?

There are several different ways you can avoid paying interest on your credit card, but among the most common are paying your credit card bill in full every month, consolidating debt with a balance transfer card, and being strategic about major purchases.

When should I pay my credit card to avoid interest?

You should pay your credit card as soon as you get it to avoid interest. There can be interest charged on the previous month’s balance between when the bill is issued and the due date. By making a prompt payment, you could avoid paying that.

How can I get my credit card company to waive interest?

You can call your credit card company’s customer service and request that interest be waived. You will likely have to explain the situation that led to this request. You might get a one-time waiver on some or all interest charges, depending on the situation and the issuer’s policies.

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Your credit utilization is the percentage of your overall credit limit that you’re using, and it can have a major effect on your credit score. As your credit usage decreases, it can positively affect your score since it shows you’re responsible with credit. On the flipside, high credit utilization can ding your score as it suggests you’re overspending

If you’re wondering how to lower credit card utilization, there are some steps you can take to do so and help build your credit score.

What Is Credit Card Utilization?

Credit card utilization, or simply credit utilization, is how much of your credit limit you’re using on your revolving credit accounts. You can calculate this percentage by taking the total of your credit card balances and dividing it by your total credit limit.

For instance:

•  Say you have two credit cards with limits of $3,000 and $5,000 respectively.

•  You have a balance of $600 on the first card and $1,000 on the second card.

•  By taking the total of your balances — $1,600 — and dividing it by your overall credit limit — $8,000 — and then multiplying by 100 to get a percentage, you’d end up with a credit utilization rate of 20%.

Why Does Your Credit Utilization Matter?

When it comes to your credit score, scoring models look at various factors, including your credit utilization on both individual accounts and overall. In other words, if your overall credit utilization is high, or one of your revolving accounts has a high balance, your score could be negatively affected.

Considering that credit utilization determines 30% of your FICO® score, which is the scoring model used by most lenders, it’s a major factor that affects your credit score.

What Is a Good Credit Card Utilization Rate?

As a credit card rule, you should aim to keep credit utilization under 30%. While this is the baseline, the lower your credit utilization is, the better. Many financial experts recommend keeping that figure closer to 10%.

A lower credit utilization rate demonstrates to lenders that you are responsible with your credit and don’t appear to rely on credit too heavily.

Tips for Lowering Your Credit Card Utilization

The good news is that you can raise your credit score relatively quickly just by lowering your credit utilization. Here’s how to lower credit utilization.

Paying Down Your Balance

Making payments before the due date arrives or the billing cycle ends could mean your balance goes down before your credit card issuer reports the amount to the credit bureaus. You could even make a payment right after your purchase goes through.

Having a lower credit card balance lowers your credit utilization, even if your credit limit remains the same.

Cutting Down on Spending

Budgeting carefully and reducing your spending could prevent you from racking up excessive credit card debt and getting stretched too thin financially.

However, that’s not to say you can’t use your credit card. Rather, limit your spending to what you can afford to pay off in full that billing cycle. Additionally, if you find your debt starting to balloon, consider pausing your credit card usage until you’ve gotten your balance under control so your credit utilization isn’t pushed higher.

Paying off Credit Card Balances With Personal Loans

If you’re carrying a balance on a credit card, one option to pay it off is taking out a personal loan. You could qualify for a lower interest rate, which can make the debt easier to get a handle on paying off. Plus, a personal loan is an installment loan, which means it won’t count toward your credit utilization.

However, you need to make sure you can still afford the payments and can qualify for competitive rates and terms. Some lenders may charge an application or origination fee — take this amount into consideration when deciding whether it’s worth going this route.

Requesting a Credit Limit Increase

Increasing your credit card limit can lower your credit utilization even if your outstanding balance remains the same. To get a credit limit increase, contact your credit card issuer to request one, either by calling the number listed on the back of your card or logging onto your online account.

Keep in mind that your credit card issuer may not approve your request. You may have to meet certain criteria to qualify, such as having a history of on-time payments and responsible credit usage.

Opening a New Credit Card

Opening a new credit card can increase your overall credit limit and therefore potentially lower your credit utilization. Keep in mind that you most likely won’t know what your credit limit will be until you’ve been approved for the card. 

Plus, submitting an application generally triggers a hard credit inquiry, which could have an effect on your credit score.

Avoiding Closing Unused Cards

It might sound logical to close credit cards that you haven’t been using, but doing so could have negative consequences. More specifically, closing a credit card lowers your overall credit limit, which could increase your credit card utilization even if your credit card balance remains the same.

Recommended: What is the Average Credit Card Limit?

Becoming an Authorized User

You could ask your spouse, family member, or close friend to add you on their credit card as an authorized user. If the primary cardholder maintains a low balance and has a high credit limit, it could lower your overall credit utilization.

Before going this route, however, speak with the primary cardholder to determine whether becoming an authorized user will help your credit score. You’ll also want to be clear on how you plan on using the card, or if you’d rather be a cardholder in name only.

Finding Out Whether Your Issuer Reports to Credit Bureaus

Most credit card issuers will report your payment activity and account balance every 30 days to the credit bureaus, though the reporting date might not coincide with your payment due date. If your card issuer reports your payment activity before you make a payment, it could look like you have a high balance, which could increase your credit utilization rate.

To remedy this, contact your card issuer to determine when it reports to the credit bureaus. Aim to pay off as much of your balance as you can before that, or request a new due date that’s ahead of when your issuer reports to the bureaus.

How Will Lowering Credit Utilization Affect Your Credit Score?

If you lower your credit utilization, you could build your credit score. Remember, your credit utilization is one of the major factors that affects your credit score. Aim to keep your credit utilization well below 30% — try using any of the methods mentioned above to do so — in order to help maintain your score.

The Takeaway

Credit utilization — the percentage of your overall credit limit you use — can have a major effect on your credit score. It’s best to keep your utilization as low as possible, but the benchmark generally recommended is that it should reach no higher than 30%. If your credit utilization rate has crept up, there are some tactics you can try to lower it, from paying down your balance to getting a new card.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

How can I fix high credit utilization?

You can decrease your credit utilization by paying off your balances early, asking for a credit limit increase, applying for a new credit card, and cutting down on spending.

How can I keep my credit utilization below 30%?

You can keep your credit utilization below 30% by watching your spending and balances across all your credit cards.

How low should I keep my credit utilization?

It’s best to keep your credit utilization below 30%. That being said, the lower your credit utilization rate, the better.

Does zero utilization hurt your credit score?

Zero utilization doesn’t hurt your credit score. However, 0% utilization doesn’t necessarily help your credit score either, as you can’t demonstrate on-time payments and other positive credit behavior.

Photo credit: iStock/Farknot_Architect

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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Roadside assistance coverage is designed to help motorists in trouble get back on the road. That usually includes helping drivers who have locked their keys in their car. Keep in mind that some plans place an annual limit on the number of calls for service or the amount they’ll reimburse you for specific services — including lockout assistance.

Read on for more information about what to expect when you sign up for auto insurance roadside assistance.

How Much Does It Cost to Unlock a Car?

If you don’t have roadside assistance and lock your keys in the car, expect to pay as much as $300 to have a locksmith come to your aid. The price varies depending on several factors, including the time of day, age and model of your car, and how far the locksmith has to drive. If you’re close to where the locksmith is working and your call comes in during normal business hours, the cost could be closer to $75 to $150.

There may be additional fees, however, if you’ve lost your key completely (rather than locking it in the car) and the locksmith has to cut a new one for you.

But if you do have roadside assistance coverage, all or some of the cost could be covered. Some plans cover getting you back into the car, for example, but not the cost of a replacement key, key fob, or repair of a damaged keypad.

Recommended: Ways to Save Money on Car Maintenance

Should You Call Roadside Assistance to Unlock Your Car?

When deciding whether to call roadside assistance to unlock your car, think safety first. If you’ve had an accident, locked a pet or child in the car, or feel in danger in some way, make 911 your first call.

But if you feel safe, roadside assistance is probably your best bet. You’ll get help quickly and with the least amount of risk to you, any passengers, and your vehicle. (Just remember to program the number into your phone.)

Common Roadside Assistance Service Benefits

Roadside assistance can be useful when you’re stranded on the side of the road and need a repair or some other type of service. This can be especially important for seniors, new drivers, people with a physical disability, and parents of young children.

Here are some of the most common circumstances for which a motorist might use roadside assistance:

Towing

If your car can’t be quickly or safely repaired or restarted where it is, roadside assistance can have it towed to a nearby qualified repair shop.

Battery Jump-start

Roadside assistance can jump-start a dead battery. In some cases, they may be able to install a new battery on site.

Flat Tire Change

Sometimes it just isn’t possible to get out and change your own tire on the roadway. Roadside assistance providers are trained to take care of flats on scene — if you have a spare available — or have your car towed to a location where the tire can be changed.

Emergency Fuel or Electric Car Battery Charge

If you run out of gas, roadside assistance may offer free fuel delivery to your location. And if the battery on your electric vehicle needs a charge, you may be able to have your car towed to the nearest charging station at no cost. (However, expect to pay for the fuel or the battery charge.)

How to Choose the Right Roadside Service Provider

Before you go shopping for coverage, check to see if it’s already provided by your auto insurance, vehicle manufacturer, credit card company, or an organization with which you’re associated. Customer reviews can indicate how reliable a provider is.

Be aware that some plans that come with a new car cover you for only a limited period of time, from a few months (as with a free trial) to a few years (such as the length of your limited warranty).

Roadside assistance is typically offered for an annual fee. Some plans provide only the basics (which usually includes lockout service), while others offer several tiers of benefits. When choosing your level of coverage, know that cheaper plans often have lower limits on the numbers of calls you can place, or cover only a portion of towing and other services. Read the fine print to make sure you understand what you’re getting. It can also help to get up to speed on how car insurance works.

Has your insurance gone up after an accident? If you’re doing some personal insurance planning, see whether a new auto policy might fit in your overall strategy.

Recommended: How to Lower Your Car Insurance

Ways to Get Your Car Open If You’re Locked Out

Locking your keys in your car is a maddening experience, especially when you’re running late or alone in a dark parking lot. If you’re stressed out, you may want to call for help right away. But if you’re up for trying a DIY break-in, here are a few tips.

Use a Wire Hanger

If your car has a manual lock, you can try threading a hanger or similar tool through the rubber gasket around the driver’s side window and into the door frame to pull up the lock-pin. Keep in mind that this method can damage your car, which could cost more than waiting for a pro.

Go Through the Trunk

If your trunk is open, you might be able to access the backseat. Check to see if there’s a panel you can push that allows you to crawl through to the car’s main interior.

Turn Your Phone Into a Digital Key

If you’ve already added a digital car key to your smartphone, now is the time to try it out!

Get the Key Code to Make a New Key

After the roadside assistance service person verifies that the car you want to get into is yours, he or she may be able to get the key code from the manufacturer or dealer (or by using decoding tools) and cut you a new metal key.

Recommended: What’s the Cheapest Way to Rent a Car?

The Takeaway

For an annual fee, roadside assistance programs typically cover a wide range of problems that befall motorists. The most common service calls are lockouts, flat tires, battery jump-starts, and emergency fuel delivery when you’ve run out of gas. Though insurance coverage varies, most plans consider lockouts a basic service. But you should check the fine print on your plan to verify what’s included.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

How does roadside assistance open a locked car?

A roadside assistance service provider will likely have several different tools available to pop or pick a car lock, or they may be able to cut a new key for you. If all else fails, your car can be towed to a location where the car can be worked on.

What should you do if your car is locked and the keys are inside?

If you’ve locked in a child or pet, or you feel in danger, call 911 right away. But if you feel safe and you’re looking to get help quickly and with the least amount of risk to you and your vehicle, a call to roadside assistance can be a good choice.

Can 911 help with locked keys in a car?

911 was created to deal with emergencies, and it will be up to the dispatcher to decide how to prioritize your call. If an officer is dispatched, or if one sees you stranded and pulls over to help, you still may have to wait for a locksmith with the proper tools or a tow truck.

Photo credit: iStock/ronstik

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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