Kevin O'Leary: How Many Credit Cards Should You Have?

The "Shark Tank" star has eight credit cards, but says you should have at least two.

Many financial experts agree that utilizing credit cards in a responsible way is an important route to building credit, so that you can then borrow money at a decent rate for big purchases like a home or car.

Even Kevin O'Leary, star of ABC's "Shark Tank" and a financial expert, who strongly advocates against taking on unnecessary debt, recommends swiping a credit card every now and then.

And he has a strategy.

"I recommend that everybody have at least two credit cards," O'Leary tells CNBC Make It.

"The first credit card is one that has a very low limit, let's say $2,000," O'Leary explains. "That's the [one] you use on all the online services. If they get hacked, nobody can spend more than $2,000. That's how you protect yourself.

"The other card is the one you use when you actually buy things that are not online," he adds. "And perhaps, those purchases can be much more expensive. But you haven't exposed that number to the Internet. You need both. One that's out there, and one that's private. That's the way to do it."

As for credit card rewards programs — getting points for purchases, which can be redeemed for a wide array of goods — skip rewards like airline miles and gift cards and go for a cash-back option, he recommends.

"Forget about affinity points," O'Leary says. "There's so much inflation in that. You get less and less every year for the points. Get the cash back."

So how many credit cards does O'Leary himself have?

O'Leary travels frequently, often internationally, for business and pleasure, so he carries eight different credit cards in multiple currencies, like Swiss francs, British pounds, euros and more.

"I look for efficiency, and having all these credit cards gives me diversity. It makes sure that I'm not being charged for currency conversion. Drives me out of my mind when I'm buying something in London and I'm getting whacked on a conversion price back in U.S. dollars. That doesn't happen to me, because I have one in British pounds," he says.

"My whole thing about credit cards is I don't like fees," O'Leary says. "I'm cheap."

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Kevin O'Leary: This is how many credit cards you should have (and how to use them) | CNBC Make It.

[themoneymindset]

A low limit card for online purchases is a good idea

[SeanLei]

A low limit credit card is more *for you* to not overspend. Credit card companies protect you from fraudulent claims.

[CaesarAugustus.]

“The first card should be low limit, like $2, 000.”

*spits drink* That’s low limit? I thought he was gonna say $300-500 lmao.

[jeffreyrosca]

Barbara: "My name is Barbara for that reason I'm out"

[kevinortizgomez]

I have 4 credit cards, one for online purchases. One for groceries and gas. One for bills and lastly one for restaurants. I think if you’re responsible 3-4 is good

[kennydang]

Barbara: " you have too much Credit cards and therefore im out"

[luannguyen]

Say it loud, say it proud to the bank: "I don't like fee, I'm cheap" 😎😎

[mikebarnes]

I'd say at least three - One for online/other recurring transactions where your number is stored, one for eating out (since that's the one place where your credit card leaves your sight - and some cashback cards have good rewards rates on restaurant/dining spend) and one for general spending. May need a fourth if you travel abroad and your dining and/or general spend cards have foreign transaction fees.

[RKORKO]

Don't say this to Dave Ramsey or he'll yell at you.

[luke]

Another option is to pre-convert your money at your home bank before your travel. It's sometimes free if you're a customer in good standing and is still generally much cheaper overall if not.

[CommandoMaster]

Cashback is better than reward points because those points lose value over time due to inflation if you don't use them. Cashback directly reduces your credit statement each month.

[medviation]

Dave Ramsey: That's stupid. Cut up your cards.
Kevin O'Leary: I'm richer than you. Nananananana!

Honestly, most people should NOT have credit cards. Most people are not emotionally or psychologically fit to own credit cards.

[grubhubguy]

I have two credit cards with cash back perks. I pay my cell phone on one card, and Netflix / Disney + on the other. That’s all I’ve ever used them for. 😂

[rupeestodollars]

My Top 3 credit card with no annual fee
1. Chase Freedom Flex (5% on select quarterly categories)
2. Discover It (5% cashback on select quarterly categories)
3. Citi double cash( 2% cashback on all purchases)

[Tadicuslegion]

I had a Student Credit Card since 2009 that only went to 500 bucks. It was only this year that I decided to get new cards for the simple fact it's one thing to have a 500 limit when you're 19 and just starting college and another when you're 30 and need a little more wiggle room for emergencies.

[Sai]

I've got 1, managed to get $23 in cash back so far.

[quadsnipershotplvl]

It’s not a bad answer. I agree with the cash back but it depends on what you do and your income level. Most people only need 1 credit card. After a specific income or a more variety of use you can expand

[euenfheiejrj]

Uh I’ve never been charged international with fees. I have several credit cards but mainly use chase sapphire reserve.

[LuckyDuckie]

As many as you need to get cash back on each category...I get 2-5% on all of my purchases

[Marsha_Ann]

Wow that's actually great advice! I actually have like 10 credit cards, but I would have never thought you could get a foreign credit card. Don't you have to be a legal resident of that country to apply for their credit cards? 🤔