‘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

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.

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Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.

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How to improve your credit score

O’Leary also encourages using two credit cards for purchases — so long as you pay off the balances every month.

This, he said, allows you to avoid the hefty interest charge while building up a credit history and credit score that can eventually be used for other forms of debt, such as a mortgage.

The most ubiquitous credit scoring system for American borrowers is the one developed by Fair Isaac Corporation and is called the FICO score, according to the Financial Industry Regulatory Authority (FINRA). The three major credit bureaus — Equifax, TransUnion, and Experian — use the FICO scoring model for all borrowers.

Whether or not you use credit cards can have “significant consequences for your credit score,” according to Experian. Using these cards strategically can impact several criteria on the scoring model, such as credit utilization, credit mix, and payment history.

This could be why credit cards are so popular and why 82% of Americans have at least one card in their wallet, the U.S. Government Accountability Office reported.