Tips to Manage Multiple Credit Cards
Credit card Managing multiple credit cards is a challenging task. But, with the right strategy we can easily manage them and can maximize the benefits. With the help of following tips you will be able to manage multiple credit cards:
1. Keep track Your Cards:
• Make a list and note all the necessary information about your card including, he card name, issuer, interest rate, due date, and credit limit.
• Use spreadsheet and financial apps to get all the information about your card at one place.
2. Understand Your Spending: Categorize your credit cards as per your expenses. For example, one card might be good for grocery rewards, while another can be good for travel.
3. Set up Auto pay: Set up auto pay system to that you never miss a due date. It will help you to avoid late fees and potential damage to your credit score.
4. Keep Balances Low: Always ensure to use less than 30% of your credit card limit on each card to maintain a good credit score.
5. Review Reward: Make a regular habit to review reward programmes of each card to ensure that you are using the best card for your purchases.
6. Regularly Redeem Rewards : Redeem rewards regularly to take full advantage of what you have earned. Don’t let rewards unused.
7. Keep Cards Safe: Store cards securely and keep record of card numbers and contact information in case of lose and theft.
8. Monitor Statements: Make a habit to regularly review statements of all your credit cards for any unauthorized transaction, scam or errors.
9. Monitor Your Credit Report: Review your credit report once in a year to ensure that all the information is accurate.
10. Dispute Errors: If you find any discrepancy or inaccuracies then dispute them with credit bureau to keep your credit score good.
11. Limit New Cards: Opening too many new accounts in short period of time can negatively affect your credit card score so try to avoid it.
12. Emergency Fund: Maintain an emergency fund separate from your credit cards to cover unexpected expenses.
13. Backup Card: Try to keep one card with low balance and high credit limit as a backup for emergency.
Conclusion:
Managing multiple credit cards requires strategic planning. By keeping track of your cards, understanding your spending habits, automating payments you can enjoy the benefits of multiple cards without the stress. Don’t forget to routinely check your credit report.