Smart Tips and Ways to Manage Multiple Credit Cards

In today’s digital world, it is very common for an individual to own and use multiple credit cards. It is a matter of convenience and financial prudence to own more than one credit card to utilize the benefits and value-added benefits each card has to offer. 

But, if not managed efficiently, it could lead to unchecked usage of your credit and pull you into a debt trap. This, we don’t want and have to avoid at all costs. So, here are some simple tips to help you manage all your credit cards efficiently and get the maximum benefits out of them too. 

Additional Read – 5 Beneficial Card Features That You Must Know

Benefits Of Holding Multiple Credit Cards

  • You get a higher credit limit that can come in handy at times of needs
  • You get a 30 to 50-day interest-free period to pay back the amount
  • Credit cards are easy to apply for and quickly issued, compared to a loan
  • Less paperwork to get a credit card – 100% digital, paper-free process 
  • Rewards programs, cashback, fuel surcharge waivers, merchant discounts, EMI options are just some of the great benefits you get with a credit card

Though there are many advantages to owning multiple credit cards, it has its own demerits. If you don’t keep track of the billing dates and payment dates, you may end up missing a payment and incur high-interest charges and late payment penalties. 

With multiple cards and high credit limit, you may end up spending more than you can repay. This will slowly lead you into a debt trap. The interest rate on credit cards is very high and it will quickly double or triple the amount you owe the bank. 

Here are a few simple tips to keep in mind when you are using multiple credit cards. 

#1: Keep track of the credit limit and the spending on all your cards

Each of your cards will come with different credit limits. You may be using different cards for different purposes. Like, you may use the fuel credit card for your fuel purchases and the lifestyle credit card for shopping at the mall. Make a note of all the transactions you make so you can keep track of the total amount you have spent on each card. This helps you to keep your expenses under check. You will know when to stop putting your purchases on which credit card. 

There are several free mobile apps that make tracking credit card transactions super easy. Use these apps to keep track of your credit card bills payments at all times. 

#2: Make a note of the billing dates and payment due dates for all the cards

It is very important to pay the credit card dues on time. Missing payments will lead to a high-interest levy along with charges like late payment fees. These charges are very high on a credit card. And if you happen to miss a payment on more than one card, that is more charges for you. A good idea would be to set auto-debit for the minimum amount due for all the credit cards so that you can avoid unnecessary charges even if you forget the due date. 

#3: Use the right card for the right purchase

If you own multiple cards, they should definitely be special cards giving you specific benefits; like a fuel card, lifestyle card, airlines card or an entertainment card. Ensure that you use the right card for the relevant purchase. Only then will you get to utilize the full benefits of the card. There is no point in using your fuel card for a movie ticket purchase or using your airlines’ card to shop online. Also, check for merchant offers for your cards. Each card has a different set of offers. So make the purchase on the card that will be most beneficial for that particular purchase. 

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#4: Upgrade your credit card at regular intervals

Credit card companies are regularly introducing new cards with additional features and offers. Be on the lookout for such offers and if you find a card that could be more beneficial, talk to your credit card company and see if you can get your current card upgraded to a better one. This way, you won’t lose out on the latest offers. 

#5: Check the terms and conditions of your cards regularly

Like they upgrade their card features, the credit card company updates the terms and conditions on your card too. They may change the interest rate or other charges and fees relating to your credit card. Be up to date with this information so that you don’t end up paying a lot of money towards these charges. This information should be available on the bank’s website. If not, you can contact customer service and ask them to update you. It’s important to be on top of your credit card information. 

#6: Check your credit cards statements without fail

Handling multiple cards can be confusing. Many of us don’t even look at the monthly statements and just pay the bill. That is wrong. You have to diligently check your monthly statement. There could be some charges or fees that you don’t know about. There could be a fraud transaction. If you don’t contest these, the credit card company is not going to bother about them. So check your monthly statement thoroughly before making the payment. 

Conclusion

Credit card companies are offering credit cards like Halloween candies. There is a credit card for everyone, no matter what your salary is. But using a credit card smartly requires effort on your part. It is basically an unsecured loan that gives the convenience of instant money. 

Now, holding multiple credit cards is an entirely different story. If not managed properly, you may end up with mounting interests which can be quite disastrous. Be careful and smart with your cards. Make a note and keep track of all your expenditures and transactions. Pay your bills on time and try to pay them in full. Last but not least, never spend more than you can afford to repay. Happy Shopping!