Why You Should Only Carry One Credit Card

You would be surprised how much money, hassle and worry you save yourself with a one-credit card rule. More cards add themselves to your wallet every day, from bank to store loyalty program cards, and cutting back can make your life easier to manage.

Curbs Spending

The more cards you have with you, the easier overspending becomes. Buying an expensive item you don't need is sometimes more" acceptable" when you have several credit cards to chose from. A one-card limit reminds you that you cannot spend freely and should stick to your original budget. Tracking where your money goes is easier if you do not use multiple cards regularly, helping you pinpoint unnecessary spending.

Saves Money

You save money on interest and help your credit score if you actively plan ahead and select a single card to use. Line up all of your credit cards and note the current credit limit, balance and interest rate for each. Select the card with the limit you need and the lowest interest rate, but don't forget to check how much of the credit line you've already used up. Keeping your balance under 30 percent of your credit card line improves your credit score, according to MSN Money columnist Liz Weston.

Lowers Fraud Risk

A stolen or lost wallet is a nightmare to begin with, but the situation is worse if you had multiple credit cards with you, especially when you are traveling. You must contact each credit company to report your card stolen or lost, and the more places you have to call, the more information you have to gather. The longer the lapse between a theft and your call, the more time the thief has to run up a bill in your name. A thief who has access to various cards has more personal information about you, and he may use the data to commit identity theft.

Emergency Money Access

Some emergencies require immediate access to a larger line of credit, such as your furnace dying during a cold snap. Keeping one card with you lets you save another card for unexpected expenses. Carry a card with a lower limit for small purchases so you have a card with enough credit available for large necessities.