3 tips to effectively manage multiple credit cards

If you are one of the 34 percent Americans who keep multiple credit cards, then you must be one of those who faces challenges managing multiple bills, keeping track of balances every month. Credit cards might have made our lives easy, but it certainly comes with some drawbacks. Using multiple credit cards can be tricky so here are some tips on managing them successfully

 

Pay on time

It is very important that you pay your credit card bills on time. It is also difficult to manage multiple bills at the same time. So to avoid penalties and late fees you should be able to pay bills well within time. You may set reminders or pay online bills. Whatever you do, DON’T GET LATE! You should read all the terms and conditions carefully on every card. Every bank has different interest rates and policies. If you know what card can benefit you, then you know which card to keep and which to leave. Don’t go on promotions and offers only. Analyze carefully if using a card will be good for you.

 

Purchase through the right card

You should know how to play cards. Picking the right one on right time may give you some extra benefit. Credit cards offer rewards on different purchases. By being a little tricky, you can earn a good deal of cash back. For example keeping your business card separated from your personal card can be very profitable. If you are a frequent traveler, then you can earn many points on your employer gave business card. You can use free points later for a free travel etc. Similarly for a big purchase you can keep a different card. Never use cards just for rewards.

 

Keep credit cards for essentials not luxuries

Credit cards are not meant to buy beyond your budget. If you treat your cards this way they will certainly deceive you at month’s end. Use credit cards for convenient shopping and because you do not have to carry cash. Not because you can buy anything in the world if you have credit cards. It is better to keep some cash in hand so you don’t have to buy everything on credit card. This can help you manage your finances. Multiple credit cards allow you to buy things at a discount too. Every bank offers some discounts on different brands. So shop accordingly to save you some bucks.

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