Almost every individual owns a credit card because it is a good way of maintaining finances. Smart use of credit cards ensures maintaining a good credit score. But for many, one credit card is just not enough. Hence they opt for multiple credit cards to keep up with their expenses.
In case a user is undisciplined with the credit card bill payments, it can lead to a financial problem. People with zero knowledge of managing a credit card end up getting stressed and defaulting on their payments. We have a useful set of tips for you to maintain multiple credit cards.
Advantages of Having Multiple Credit Cards
Having the best credit cards is a boon for people with higher expenses. If you can maintain your credit cards well, you will always be in good financial health.
Credit cards give you several benefits through coupons and cashback that no other medium of credit can provide. Right from saving money on fuel to cashback on every transaction, credit cards provide you with everything. Frequent travellers can avail discounts on hotel bookings and flights.
With more credit cards, your benefits multiply.
The more credit cards you own, the more these coupons and discounts you can avail yourself. But this is only possible if you can manage your credit cards.
Best credit cards come at a price, and that is financial discipline.
Tips to Manage Multiple Credit Cards
Maintaining multiple credit cards will be easy once you use the right tips. Check them out below.
Each credit card is for a purpose
You need to justify every credit card you get for yourself. It cannot be a case where you get a new card because you have exceeded the credit limit on your first one. Different banks have different offers for credit cards. Some banks offer a healthy credit limit, while others provide good discounts.
Some may charge a higher interest rate and some don’t. So consider all these factors and opt for the best credit cards from the best banks.
After that, using the right credit card for the right reasons is also necessary. Use the card that gives you discounts on movie tickets and travel for that purpose only. This way, you can maintain a limit for each credit card. Plus, you get to keep the best benefits of all the credit cards without exceeding your credit limit.
Pay your bills on time
Regular payments are the most crucial factor in maintaining your credit cards. It helps to sync the due dates of all your credit cards. It is difficult to remember different dates for different cards and maintain them. One date on all your cards will make repayments convenient. This way, you will have a schedule to follow and track.
After that, set up auto pay. All your card payments can be made automatically on a pre-decided date each month through auto pay. You can ask your respective banks to give you the date of your choice for bill payments. Banks are more than happy to move the due dates, given you make the payments regularly.
Keep a constant check on your credit limit
Maintaining multiple credit cards is like juggling multiple balls. And the basic rule in juggling is- never take your eye off the balls. You should keep regular track of the available credit limit of all your credit cards. After every big or small payment, check the credit limit.
It will help you keep track of your bills and make you think twice before making an unnecessary purchase.
Avoid Cards with Annual Fees
Try to avoid credit cards that charge an annual fee. The best credit cards are the ones that give you maximum benefit without any unnecessary charges. Such credit cards are abundant in the market. Don’t be tempted by banks that try to entice you with multiple offers and discounts while sneakily hiding the annual fees of your card.
Paying hefty charges for your credit cards will dilute their overall benefits, so it is better to avoid such cards altogether.
Don’t Carry Credit Balance
The moment you start carrying your unpaid credit card bill to the next month, your finances come in danger. Avoid paying the minimum due on credit cards. Ensure to pay off all your credit card bills on time each month. It will improve your credit score and keep your overall financial health in check.
Carrying a credit balance means paying extra charges, which you cannot afford when you own multiple credit cards. You should try and remain within 30% of your credit limit every month.