Here's What Happens When You Only Have One Credit Card

Most Americans aren't juggling a wallet full of credit cards. In fact, 30% of U.S. adults have just one credit card, and 24% have two, according to a Motley Fool Money research.

I've talked to a lot of folks who prefer to keep things simple with a single card. And hey -- if that system's working for you, there's no shame in sticking with it.

But it's also worth understanding what you might be missing out on.

1. You won't earn as many rewards

Let's start with the most obvious: if you're only using one credit card for everything you buy, you're probably leaving rewards on the table.

Many of the top credit cards today come with elevated rewards in specific categories -- like 5% back on groceries, gas, or travel. But one card usually doesn't cover every category at the highest rate.

Even a simple two-card setup (think: one for everyday spending, one for your highest spending category) can dramatically boost your cash back or points.

Let's say you spend $30,000 a year on your card:

• Earning 1% back nets you $300.
• But with a combo that averages 2%-3% back, you'd earn $600-$900.

That's double or triple the rewards, just for splitting your spending across a few cards and using the right ones at the right place.

Want to peek at the top rewards cards? Check out our best card picks for 2026 and see which ones fit your lifestyle the most.

2. Your credit utilization ratio is more vulnerable

Credit utilization is the percentage of your available credit that you're using. It's one of the most important factors in your credit score.

When you only have one credit card, any balance you carry (even temporarily) can spike your utilization rate. This can negatively impact your credit score, even if you always pay on time.

For example:

• One card with a $5,000 limit and a $2,000 balance = 40% utilization
• Two cards with $5,000 each and the same $2,000 total = 20% utilization

Also, your utilization is usually calculated per card and overall. So spreading your spending across multiple cards helps in both areas.

3. You've got no backup if something goes wrong

Ever had a card frozen for suspicious activity? Lost it? Reached a temporary limit?

If you only have one credit card, you're stuck. Even a basic no-annual-fee card can serve as a great Plan B.

4. ​​Your credit profile might look "thin"

Having just one credit account on your report can limit your credit history and depth. These are both factored into your credit score.

Lenders like to see a variety of credit types and a longer track record of responsible use.

This doesn't mean you need 10+ cards. But opening one or two more over time (across different issuers like Amex, Chase, Bank of America, etc), and using them wisely can help diversify your credit mix.

This becomes especially useful when applying for big loans like a mortgage.

If it ain't broke…

If you only use one card today and you're already financially crushing it, there's no need to change your set-up. Keeping just one credit card can be a smart move if it helps you stay organized and spend intentionally.

But if you're curious what a second or third card could unlock -- whether it's better rewards, a backup option, or stronger credit -- compare today's top credit cards and find the right fit for you.