Having too many credit cards is not bad, but to control the debt and balance credit score is what one must be familiar to deal with. Are you the one who is holding more than two credit cards and don’t know how to manage it systematically? Then we are here to guide you. Read out the low-down on how you can keep yourself away from high interest rates and penalties by managing multiple credit cards.
1. PAY ON TIME
• Pay all your outstanding bills on time
• Avoid paying the late fee along with high interest rate amount
• If you need second credit card only then apply, else don’t go for it
• Before closing all dues, it is advisable to keep a credit card at least for 12 months
• Taking a new card and closing the old one can impact your credit score
• Don’t take a credit card for a short period of time
• Too many cards will bring too many bills. So, manage them properly
• Check your credit card bank statements regularly for bill updates
• Pay your bills on or before due date
• Create alerts for due dates or set automatic payment method
2. PICK THE RIGHT CARD FOR EACH PURCHASE:
• Keep in mind- each card’s features, reward points and cash back offers
• Pick cards with give benefits of travel insurance, fraud protection etc
• Check the fixed rates, floating rates, and then pick the card with lowest interest rate
• For making any major purchases keep the interest rates in mind
• Always check the credit limit of your card
• Check the monthly/yearly fees and penalties before taking a credit card
• Try to redeem the offers by shopping groceries, paying bills etc
• For emergency use one card and for shopping, paying bills use another card
3. MAINTAIN THE CREDIT SCORE:
• Credit cards can impact your credit score badly. Don’t pay late dues
• Make a payment on or before due date to avoid penalties
• Don’t use all cards at one time
• It is best to use more than two credit cards systematically
• Monitor the balance-to- limit ratio regularly
• Bad credit score means you will not get any type of loan. So, pay all dues timely
• Don’t apply for more than one card if you can’t manage them
• Keep all your cards active to avoid from being dormant
• Don’t spend more than 30% of your credit limit. It may impact your credit score
The bottom line is checking the activity of all your cards through SMS and email time to time. Multiple credit cards can actually improve your credit score, but one should know the tricks to manage them properly. Make a strict strategy, follow the credit rules and divide the use of credit cards accordingly. Remember, if you can’t manage too many credit cards together, then don’t apply for them.
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