Tips and Techniques to Successfully Manage Multiple Credit Cards

There is no doubt that credit cards in India are a powerful financial tool and can be customized to suit needs. Credit cards have become one of the most well-known modes of payment. People possess multiple credit cards to avail of the special offers on each card. While the benefits may be doubled, tripled, or quadrupled with numerous credit cards, it is important to be savvy enough to manage all of them at once.

This blog shares vital tips and guidelines to manage multiple credit cards successfully.

Tips to successfully manage multiple credit cards

  • Be aware of the credit limit on each card

To manage multiple credit cards, you must check the credit limit on each card whenever you perform a transaction or make a purchase, small or big. Banks allot the limit on your credit card based on your credit history and credit score. A lower credit score means a lower credit limit. Keep a vigil on credit card limits, and you can plan your finances in a better way. Additionally, you can use all your cards effectively by splitting the expenses instead of overusing a single card.

  • Choose the right card

To manage multiple credit cards efficiently, you need to choose the right card that can manage your regular expenses and offer unique features and benefits. The general criteria to check before choosing a credit card are:

Interest Offered – Know the interest charges and how they will impact the amount you owe to the credit card company. The interest charged on the credit card varies from one bank to another, and hence you must undertake thorough research on applicable interest rates. 

Benefits and Offers – The next factor to consider is the benefits and rewards of the card. There are rewards on joining, renewing and so on. Choose a card with attractive rewards and cash backs to leverage the maximum benefit from the credit card.

Fee and Penalty – While many credit cards are available at no cost some banks may charge a fee. Additionally, the penalty for non-payment of the credit used can also vary and you must doctor these in when choosing the right credit card.

  • Keep a reminder for bill payment date

Remember, if you have more cards, you will have to keep track of outstanding payments for all the cards. Choosing fewer or more cards depends on you, but use tracking systems and online calendars to track the due dates. Do not miss these, then you will need to pay a penalty. So, set up a reminder for bill payments and try and ensure you have the funds to meet the expenses.

  • Check card terms and conditions

When you own multiple credit cards, it is smart to maintain a document as a ready reckoner of the terms and conditions of all the credit cards. You must note key points like interest chargeable, annual fees, balance transfer fees, late payment fee, reward points and expiry, offers etc. You must also be aware of the partner flights, restaurants, hotels, and bonus offers to ensure that you utilize the right card for the right purpose and leverage its unique benefits.

  • Keep a tab on credit card activity and statements 

With multiple cards, it is easy to lose track of card usage. Regular checking of the credit card statement can immediately alert you of any fraudulent activity or unauthorized transaction. You need to keep a tab of credit card activity especially if your family members or loved ones use it. Constant, unmonitored purchases on credit cards may result in unwanted debt and penalties.

  • Draw up credit card budgets

Although it may sound boring, drawing up a budget for your credit cards is an essential exercise. You can make a list of expenses you will meet with each of your cards. The next step is to split the expenses between them, and check if they fall within the credit limits of each card. This way, you can ensure that the credit use on each card is minimum and your credit score remains high.

The Final Word

Although owning multiple credit cards may seem daunting, by following the above tips, you can make the most of your cards through savings, daily spending, shopping escapades, travel experiences, rewards, and bonus offers.



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