One credit card for everything: pros, cons and tips to make it work

What if you only had one credit card for everything?

No juggling deadlines. Not figuring out which card to draw for which occasion. Slimmer wallet.

On the other hand, you may miss the opportunity to maximize your rewards by using different cards for different purchases. And having only one card also means saying goodbye to those generous signup bonuses that can come with the new rewards card.

Like everything else in life, there are pros and cons to shrinking your credit card portfolio down to one plastic rectangle. Read on to find out the pros and cons of this strategy, tips on how to make it work for you, and even a few single card options worth considering.

Pros of having only one credit card

• You are more likely to pay your bill on time“You have one provider to think about, one piece of plastic to keep track of, one bill to pay each month,” said Natasha Rachel Smith, personal finance and consumer expert at TopCashback.com. Timely payments are the most important credit score factor, accounting for 35% of your score.
• You are less likely to get into debt: With one card, “you’ll be more aware of what you’re spending on that account,” says Andrea Voroh, consumer savings expert. “If you have multiple credit cards, you can get into a more difficult situation because you don’t necessarily know the balance you have on different cards, and you also have more credit available to use.”
• You have fewer complex queries affecting your credit scoreA: Every time you apply for a credit card, the bank checks your credit history. These views add up and can even lower your score – albeit temporarily, depending on your score, the consequences can range from minimal to significant. This can make a difference if you’re trying to buy a house or get some sort of loan, Vorokh said.
• You may be able to maximize your reward: You will only have one card and one laser to score points or accumulate cashback. This way you know that all your points are in the same system, which can be a problem if you have different cards from different banks.
• you have a better chance prevent fraud: “You’re more likely to check your account for fraud regularly,” Vorokh said, “when you only have one account to check.”

Cons of having only one credit card

• You have less flexibility in your cash flowA: If you need to make a large purchase on, say, the 10th of the month, and your single card billing cycle ends on the 11th, you’ll be stuck paying that bill pretty soon. However, if you have other cards with cycles that close later this month or the first few days of next month, or if you have an additional card with a 0% APR promo period, you’ve just bought yourself some time to save or raise that extra money.
• You may be missing out on reward opportunities: “You lose big in everything that is available to you,” Smith said. Of course, your card can give you back cash, but at the same time, it does not give you points for paying for air tickets and vice versa. “There is no well-designed supercredit card that will give you all the benefits,” she said.
• You can’t maximize your spending: Some cards give more points at restaurants, others at gas stations. With 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 should keep a close eye on your credit utilization rate: Your credit utilization ratio is the percentage you use of the total credit available to you. Ideally, you want to keep it below 30%. As close to zero as possible, even better. For example, if you have one credit card with a $5,000 credit limit, you will never want to pay more than $1,500. But if you have a second card with, say, a $3,000 credit limit, you can pay another $900 in the same month and still stay within that 30% ratio. Having more than one credit card can increase your credit utilization rate with multiple lines of credit.
• You must make one card suitable for all purposes and occasions.: If you have a business or a rental property, it’s good to have a credit card dedicated solely to those expenses, Vorokh said. It’s easier to track these expenses and calculate deductions when it’s time to pay taxes.
• Your only card may not be accepted everywhereA: While Visa and Mastercard are more universally accepted, and American Express signs are increasingly seen on storefronts around the world, you may find yourself in a location that doesn’t accept the type of credit card you have. Also, if you plan on using your only card abroad, you should make sure it doesn’t charge foreign transaction fees – usually 3% on every purchase.

Best Single Card Strategy Cards

Ready to cut your wallet down to one card? Here are some options to investigate:

• Both Chase Sapphire cards are good choices.: The Chase Sapphire Reserve Card ($550 annual fee) offers 3 points for every dollar spent on all travel and restaurant purchases, in addition to many benefits. With the Chase Sapphire Preferred Card ($95 annual fee), you earn 2 points for every 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 across multiple stores and redeem points for flights, hotel rooms, and curated experiences. Both cards have generous signup bonuses and do not charge any transaction fees abroad.
• Costco members should consider Citi Costco Anywhere Visa® CardA: Cardholders get 4% cashback on gas (up to $7,000 per year, 1% thereafter), 3% on food and travel, 2% on Costco purchases, and 1% on everything else. You also won’t pay annual or overseas transaction fees, but you must be a Costco member to receive a card. In addition, rewards can only be used once a year, at the end of the February billing cycle.
• Capital One has two easy 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 car rentals booked through Capital One Travel and 2 miles per dollar. everything else (annual fee of $95). Both cards make it easy to redeem, offer generous signup bonuses, and charge no foreign transaction fees.

bottom line

Regardless of which card you choose, make sure the reward structure suits your lifestyle and the credit limit is large enough so that you can use your credit comfortably. In the end, the number of cards in your wallet is not as important as your ability to manage them successfully.

Constance Sommer is a freelance writer specializing in business, finance and healthcare. Her work has been featured in Forbes, Los Angeles Times, MarketWatch and Yahoo.