‘Credit cards will kill you’: Kevin O’Leary says there’s 1 big key to raising your credit score — and anyone can do it. Here’s how to save your score in 2025

In addition, as of the third quarter of 2024, Americans’ total credit card balance is an eye-watering $1.17 trillion.

That’s why investor and entrepreneur Kevin O’Leary firmly stated that “credit cards will kill you,” in a recent video uploaded to his YouTube channel.

The high interest rates are an easy trap to fall into for many unwitting borrowers. However, despite the jaw-dropping double-digit rates, O’Leary doesn’t shun credit cards altogether.

In fact, he actually recommends getting two credit cards. Here’s why — and what it would mean for your credit score.

Why O’Leary prefers having two credit cards

O’Leary revealed he has two credit cards — one with a tight spending limit of $2,500 that he only uses for online purchases, and the other for business and personal use that he “never puts online.” This hack, he said, is to help avoid losing significant sums to online cybercriminals.

An estimated 52 million Americans fell victim to fraudulent charges on their credit or debit accounts in 2023, according to data from Security.org.

Altogether, 60% of U.S. credit card holders have been a victim of fraud, with 45% of that cohort having experienced fraud multiple times.

Only 7% of these frauds were due to credit cards that were physically lost or stolen — the rest were due to online data breaches.

With this in mind, O’Leary’s strategy of ear-marking one card for a tight spending limit for online purchases seems justified. If he does get hacked, the fraudster will only get access to a limited amount — and since the other card is never used online, it likely wouldn’t be exposed to the same level of data risk.

You don’t need two physical cards to deploy this strategy, either. Many online platforms offer virtual credit cards, which are temporary cards that can be used to safely shop online, according to Experian.

If these temporary virtual cards are compromised, it doesn’t impact your personal bank account or credit information, keeping you safe from fraudsters.

Consumers should also know that their liability for unauthorized charges is limited to $50 because of the Fair Credit Billing Act of 1974.

So, it makes sense to carefully track all your credit card bills and report fraudulent transactions to your bank or credit provider as soon as you can.