Credit Cards

5 signs you should stick to one credit card

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Some people do better with a single card.

Key points

  • Having multiple credit cards allows you to take advantage of different rewards programs and member benefits.
  • Despite this, sometimes people do better with a single card.
  • There are some signs that it is better to use only one card for your expenses.

With so many great credit cards available, many people find it advantageous to sign up for multiple cards.

Carrying multiple cards allows you to take full advantage of the rewards programs each offers by strategically choosing a card for each purchase. If you select cards with different membership benefits, you can also get many benefits such as early hotel check-in, airline lounge access, rental car insurance, chargeback protection coverage, discounts on merchandise and more. .

But having multiple cards is not the best option in all situations. To help you decide what’s best for you, keep an eye out for these five signs that having a single card is the right choice for your needs.

1. You worry about overspending

Although credit cards offer perks and rewards, they’re not worth trying to earn if you suspect you may end up carrying a balance because you can’t control your spending.

Credit card interest rates tend to be very high, and the interest you pay will be much higher than the value of the cardholder’s rewards and benefits if you don’t pay your card in full by the due date. limit each month.

The more cards you have, the easier it is to cross the line. So if you suspect that trying to control your balance and stay within spending limits would be difficult if you have multiple cards, then stick with one, or none.

2. You’ve had trouble making credit card payments on time

If you find it hard to remember making payments, you may also want to keep a card.

With a single credit card, it should be easier to keep track of when your payments are due. It’s also easier to set up an automatic payment for a single card rather than multiple, as you’ll always know when the one-time payment will be withdrawn so you can reduce the chances of overdrawing your account.

Even a single late card payment can cause serious, long-term damage to your credit. If you suspect that having multiple cards could mean missing your payment deadline, don’t do it.

3. You are pretty consistent in what you spend money on.

If most of your spending is concentrated in one area, you may be able to find a card that gives you additional bonus rewards for that particular type of spending. There are fewer benefits to getting multiple cards when having just one strategically chosen card will allow you to earn additional rewards for most or all of the spending you’re doing.

4. You don’t want to bother managing multiple rewards programs

Sure, juggling multiple cards requires some extra work. After all, you need to keep track of which card to use for each purchase to get the most rewards. If this sounds like a huge hassle to you, you might want to get a great card and focus on learning the ins and outs of their rewards program.

5. You don’t spend much on your cards

If you don’t spend a lot of money on credit cards, it might not make sense to have several different ones, as it could take forever to earn enough points, miles, or cash back to redeem them. In this case, concentrating your spending on a single card allows you to earn rewards more quickly so you can take advantage of them.

If you spot any of these five signs, then it’s clear that getting a great card is right for you. Since you’ll be relying on that card for all your benefits and rewards, just be sure to do your research to find the right one.

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