Experts warn against using only one credit card: There is a huge risk

In the modern financial world, the habit of "paying with a single credit card," which is frequently preferred due to its ease of use and reward programs, is criticized by experts for carrying various risks. With the rise of digitalization, loading all expenses onto a single card can create significant dangers from both technical and personal perspectives.

One of the most significant risks is the "loss of access" that arises when a card becomes temporarily unusable. As a result of unexpected system failures in banking infrastructure, planned maintenance processes, or blocks applied due to cybersecurity, users may find themselves unable to access their financial assets. Furthermore, if the card is physically damaged—for example, if the chip malfunctions or a problem occurs with the magnetic strip—not being able to find an alternative payment method until a new card reaches the user can be a serious problem.

The disadvantages of using a single card are also emphasized in terms of credit scores. According to financial advisors, the "credit utilization ratio" considered by the credit registry system appears high if a large portion of a single card's limit is used.

Since this situation is perceived as a risky level of indebtedness, it can negatively affect one's credit score. However, when the same total expenditure is balanced across multiple cards and limits, the utilization ratio decreases and the credit score can remain healthier.

On the security side, the "card cancellation and renewal" process initiated in the event of card information theft or the detection of suspicious transactions turns into a major impasse for those who have based all their payment traffic on a single card.

In particular, having automatic payment instructions or subscriptions defined to this card can cause all payments to be disrupted upon card cancellation.

In the face of this picture, experts emphasize that diversification in payment methods is essential. It is recommended to keep at least one backup card with different banks and payment infrastructures in one's portfolio. In this way, both immediate access problems can be prevented and negative effects on the credit score can be reduced.

In short, it is once again reminded that portfolio diversification is a measure that protects financial health, not only in investment instruments but also in daily payment habits.

News Source: 12punto