Is using one credit card for everything worth it?

What if you had only one credit card – for everything?

No juggling due dates. No figuring out which card to pull out for which occasion. A thinner wallet.

On the other hand, you might be missing out on the opportunity to maximize your rewards by using different cards for different purchases. And having just one card also means saying au revoir to those generous sign-up bonuses that might come with a new rewards card.

Like everything else in life, there are pros and cons to whittling your credit card portfolio down to only one plastic rectangle. Read on to learn the pros and cons of this strategy, tips to make it work for you and even a few single-card options to consider.

Pros of having just one credit card

• You’re more likely to pay your bill on time: “You’ve got one provider to think about, one piece of plastic to keep your eyes on, one bill to pay each month,” said Natasha Rachel Smith, former personal finance and consumer expert for TopCashback.com. Making on-time payments is the most important factor in credit scoring, accounting for 35% of your score.
• You’re less likely to fall into debt: With one card, “you’re going to be more aware of what you’re spending on that one account,” said Andrea Woroch, a consumer savings expert. “If you have multiple credit cards, that’s when you can get into a trickier situation, because you’re not necessarily aware of the balance you have on different cards, and you also have more available credit to use as well.”
• You have fewer hard inquiries impacting your credit score: Every time you apply for a credit card, the bank takes a look at your credit history. Those views add up and can even drive your score down – while only temporary, depending on your score, the consequences can range from minimal to significant. That can make a difference if you’re trying to buy a house or get any kind of loan, Woroch said.
• You may be more able to maximize rewards: You would have only one card and one laser focus on racking up points or amassing cash back. This way, you know all your points are in the same system, which can be a problem if you have different cards from different banks.
• You have better chances to prevent fraud: “You’re more likely to check your account for fraud regularly,” Woroch said, “when you only have one account to check.”

Cons of having just one credit card

• You have less flexibility in your cash flow: If you need to make a big purchase on, say, the 10th of the month, and the billing cycle of your single card closes on the 11th, you’re going to get stuck paying that bill pretty soon. However, if you have other cards with cycles that close later in the month or in the first few days of the next month – or if you have an extra card with a 0% APR promo period – you’ve just bought yourself some time to save or raise that extra cash.
• You may be missing out on reward opportunities: “You are losing out big-time on everything that’s available to you,” said Smith. Sure, your card may give you cash back, but then it’s also not giving you points toward airline travel and vice versa. “There is no one, well-rounded, super credit card that is going to give you all the benefits,” she said.
• You can’t maximize your spending: Some cards give more points at restaurants, others at gas stations. By having more than one card, “you can really take advantage of some of the benefits of the system,” said Matthew Goldman, founder of Wallaby Financial.
• You have to keep an eagle eye on your credit utilization ratio: Your credit utilization ratio is the percentage you are using of the total credit available to you. Ideally, you want to keep it below 30%. As close to zero as you can get is even better. For example, if you have one credit card with a $5,000 credit limit, you don’t want to ever owe more than $1,500. But if you have a second card with, say, a $3,000 credit limit, you can owe another $900 in the same month and still stay within that 30% ratio. Having more than one credit card can boost your credit utilization ratio with multiple credit lines.
• You have to make that one card fit all uses and occasions: If you own a business or a rental property, it’s nice to have a credit card devoted solely to those expenses, Woroch said. It’s easier to track those expenses and to figure out deductions when tax time comes around.
• Your one card might not be accepted everywhere: While Visa and Mastercard are more universally accepted, and American Express signs are increasingly common in store windows across the globe, you may wind up in a place that doesn’t accept the type of credit card you have with you. Also, if you’re planning to use your one card abroad, you should make sure it doesn’t charge foreign transaction fees – usually 3% of each purchase.

Best single-card strategy cards

Ready to trim that wallet down to just one card? Here are a few options to investigate:

• Both Chase Sapphire cards are a good pick: Chase Sapphire Reserve card ($550 annual fee) offers 3 points per dollar spent on all travel and dining purchases in addition to a slew of benefits. With the Chase Sapphire Preferred Card ($95 annual fee), you earn 2 points per dollar spent on travel and 3 points at restaurants. Both give you access to the Chase Ultimate Rewards portal, where you can maximize your points at various merchants and redeem points for airline flights, hotel rooms and curated experiences. Both cards come with generous sign-up bonuses and don’t charge foreign transaction fees.
• Costco members should consider the Costco Anywhere Visa® card by Citi: Cardholders get 4% cash back on eligible gas and EV charging purchases (up to $7,000 annually, 1% thereafter), 3% on dining and travel, 2% on Costco purchases, and 1% on everything else. You also won’t pay annual or foreign transaction fees, but you must be a Costco member to get the card. Also, the rewards are only redeemable only once a year, at the end of the February billing cycle.
• Capital One has two straightforward cards to consider: The Capital One Quicksilver Cash Rewards card gives 1.5% cash back on all purchases (no annual fee), and the Capital One Venture Rewards card gives cardholders 5 miles per dollar on hotels and rental cars booked through Capital One Travel and 2 miles per dollar on everything else ($95 annual fee). Both cards make redemption easy, offer generous sign-up bonuses and come with no foreign transaction fees.

Bottom line

Regardless of the card you pick, make sure the rewards structure matches your lifestyle and the credit limit is large enough so you can handle your credit utilization comfortably. In the end, the number of cards in your wallet is not as important as your ability to manage them successfully.