2. “One Card Wonder: How Single Credit Card Users Maintain Higher Credit Scores and Lower Balances”

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One Isn’t the Loneliest Number After All

Minimalism has been a popular trend for over a decade, with numerous best-selling books, Netflix shows, and TikTok videos promoting the idea that less is more. This concept extends to finances as well. At O1ne Mortgage, we explored what financial minimalism looks like by examining data on consumers with only one active credit card. Surprisingly, these consumers are managing their credit quite well.

Single Card Users Have Higher Average Credit Scores and Lower Balances

Consumers with a single credit card tend to have lower average balances and higher credit scores compared to the general population. The average balance for single card users is $2,134, significantly lower than the U.S. average of $6,541. Additionally, these consumers use only 21% of their total credit limit, compared to 29% for all consumers. This responsible usage is reflected in their average FICO® Score of 718, slightly higher than the national average of 715.

Many Consumers With One Credit Card Are Younger

While it’s easy to assume that younger consumers only have one credit card because they haven’t had the opportunity to acquire more, data shows that many older consumers also choose to stick with a single card. For example, 36% of Gen Zers have only one credit card, but this trend is also seen among older generations. This suggests that financial minimalism is a choice for many, regardless of age.

The Single-Card Habit Is Everywhere

Experian’s data indicates that the trend of using a single credit card is widespread across the U.S. No state deviates more than 4 percentage points from the national average of 25% of consumers using just one card. Vermont leads with 29.2% of its consumers having only one credit card. Interestingly, the credit scores of single card users are not significantly different from those with multiple cards, but they do show less variance.

Balance Transfer Offers Can Help Reduce the Number of Cards You Carry

If you have multiple credit cards and want to simplify your finances, a balance transfer offer might be a good option. These offers allow you to transfer balances from other cards to a new card with a lower interest rate, often for a promotional period of 12 to 21 months. While there may be a balance transfer fee, this strategy can help you save on interest and reduce the number of cards you carry.

At O1ne Mortgage, we are committed to helping you manage your finances effectively. If you have any mortgage service needs, please call us at 213-732-3074. Our team is here to assist you with the best solutions tailored to your needs.

Methodology: The analysis results are based on an Experian-created statistically relevant aggregate sampling of our consumer credit database, which may include the use of the FICO® Score 8 version. Different sampling parameters may generate different findings compared to other similar analyses. Analyzed credit data did not contain personal identification information. Metro areas group counties and cities into specific geographic areas for population censuses and related statistical data. FICO® is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.

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