Only 9% of Millionaires Don’t Have a Credit Card — How Many Should You Have?

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Some millionaires don’t have credit cards, but the majority have multiple. What should the rest of us do? Read on to learn about the options. 

If the media were to be believed, not only does every person of wealth walk around with a wallet full of credit cards, but they all have super fancy credit cards with no limits that they can use to buy yachts or small islands.

As it turns out, this isn’t the case. At least, not for all rich people.

Our study on the credit card habits of folks with net worths over $1 million actually showed that, while most (70%) have two or more credit cards, about a fifth (22%) only have a single card. Even more surprising, a full 9% don’t have any personal credit cards at all. This is compared to nearly a quarter (24%) of people with lower net worths.

So, who has it right? Should you have one card, multiple cards — or no cards?

At least one card is often necessary

In my opinion (which is certainly biased, but not uninformed), it has become almost a requirement to have at least one credit card in good standing. There are a few reasons for this:

Credit: Having a credit card that you use and pay in full each month is arguably the easiest way to build your credit. Since good credit is important for everything from getting an auto loan to applying for an apartment, this makes credit cards a key financial tool.Safety: Credit cards are objectively one of the safest ways to make purchases. For one thing, they have extensive fraud protections built in, including a legal cap on how much liability you have for fraudulent purchases. And even if a fraudster gets your card info, they can’t use it to drain your bank account (unlike a debit card). Plus, you can dispute transactions for services that weren’t rendered or purchases that never showed up.Online shopping: Online shopping is not only here to stay, but it’s growing each year. More than 75% of U.S. consumers shop online. Unless you’re going to trust every website with your debit card (don’t do this!), you’ll need a credit card to make online purchases.Convenience: More and more places are limiting how — or even if — they accept cash. Having a credit card can make in-store shopping significantly more convenient.

Going beyond these basics, having a credit card can also be extremely rewarding. I mean this in the literal sense — rewards credit cards can be extremely lucrative — and figuratively. Many cards come with extra perks that can make your life easier (and save you money).

A case for the one-card wallet

So, we’ve laid out why you need at least one card. Do you need more than one? Well, there’s arguments on both sides of this one. But, for the average person, a one-card wallet can actually make a lot of sense.

For example, if you’re only really interested in credit cards for the convenience and security features, then you probably don’t need to complicate things by adding multiple cards to the mix. Find one card that works for you, ideally from a bank with a good mobile app so you can easily track your purchases and make payments.

And yes, even if you want rewards, you can still get away with a one-card strategy. Look for a cash back rewards card with a good flat rate on all purchases. If it also has a bonus category (or two) that matches your spending habits, that’s even better.

The greatest game: maximizing rewards

While a one-card wallet can work for some folks, if you’re at all interested in maximizing your credit card rewards, then you’re going to need more than one card. No single card on the market is going to provide the best rewards on everything.

How many cards you’ll need will depend on your strategy, lifestyle, and wants.

You could set up a nice system with three or so cards to cover the bulk of your purchases fairly well — without making things too complicated. Many great rewards cards will offer multiple bonus categories that cover common purchases, like cards with both grocery and gas rewards.

Or, if you’re like me, you can go all-in. I have multiple cash back and travel rewards cards with bonus categories that cover pretty much everything I buy. On top of that, I have cobranded cards for the hotels and airlines I use the most. All of this adds up to a card collection in the double digits. (And yes, I absolutely need my spreadsheets to keep track of it all.)

No one-size-fits-all answer

If we saw anything in our study, it’s that even millionaires don’t all do the same thing with their finances. And that’s one of the best (and worst) things about personal finance: it’s personal. While we can — and should — learn from others, there’s no “one right way” for everyone. You get to find what works for you (no matter how many credit cards you wind up collecting).

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