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Credit Cards are useful financial tools that offer convenience and rewards. However, if you have multiple cards, keeping track can become overwhelming. With the right approach, you can use your Credit Cards judiciously. Want to know how to manage more than one Credit Card?
How to manage multiple Credit Cards?
1. Track your spending
Keep a tab on the credit limit for each of your cards. Regularly review the statements for each card. Set spending limits on each Credit Card to avoid hefty bills when it's time to pay up.It's recommended to keep your credit utilisation ratio below 30% of your total available credit. This means you should aim to use no more than 30% of your credit limit on each card, and across all your cards combined.
2. Mark due dates
Missing a payment can have a negative impact on your credit score and lead to penalties. To avoid this, set up reminders and automatic payments for each card's due date. Just make sure you have enough money in your account to cover the bills of all the Credit Cards.
3. Choose the right cards
Research Credit Card interest rates before applying for a card. For example, Axis Bank Credit Cards usually offer interest rates of around 3.6% per month. You can also enjoy numerous discounts and cashback on various categories, including travel and dining, and airport lounge access. Check out the documents required for Credit Cards.
Don't just apply for every card offer you get. Pick cards that truly benefit your lifestyle and spending patterns.
4. Prioritise debt repayment
If you're carrying balances on multiple cards, focus on paying off the highest-interest debt first. This strategy can save you money in the long run. Make minimum payments on all cards, but put any extra money towards the card with the highest interest rate.
You can also consider the option of a balance transfer, which can be beneficial if you need to pay in parts. This involves moving high-interest Credit Card debt to a card with a lower interest rate.
5. Make the most of reward points
One advantage of having multiple Credit Cards is the ability to maximise rewards. Use each card strategically: use your travel rewards card for flights and hotels, swipe your cashback card for everyday purchases, and save your low-interest card for large purchases you might need to pay off over time.
Also Read: Choosing the right one: 13 different types of Credit Cards in India
Conclusion
If you are wondering how to manage two Credit Cards simultaneously, the strategies mentioned above can be highly effective. With a little effort, you can reap the benefits of multiple Credit Cards while maintaining healthy and stress-free finances. By staying organised and monitoring your spending, you can avoid common pitfalls. Additionally, taking advantage of each card's unique perks can enhance your overall financial well-being. Partner with Axis Bank and seamlessly manage your finances with Axis Bank Credit Cards.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
FAQs
Use a system to keep track of your cards and use specific cards for assigned purposes, such as for dining out and groceries. Keep up with card payments by aligning payment dates or by using autopay. If you can manage multiple cards successfully — including on-time payments — you might see a boost to your credit score.
How do people manage multiple credit cards? ›
Use a system to keep track of your cards and use specific cards for assigned purposes, such as for dining out and groceries. Keep up with card payments by aligning payment dates or by using autopay. If you can manage multiple cards successfully — including on-time payments — you might see a boost to your credit score.
What is the 2 3 4 rule for credit cards? ›
The 2/3/4 rule: According to this rule, applicants are limited to two new cards in a 30-day period, three new cards in a 12-month period and four new cards in a 24-month period. The six-month or one-year rule: Some issuers may only let borrowers open a new credit card account once every six months or once a year.
What is the number 1 rule of using credit cards? ›
1. Pay off your balance every month. Avoid paying interest on your credit card purchases by paying the full balance each billing cycle. Resist the temptation to spend more than you can pay for any given month, and you'll enjoy the benefits of using a credit card without interest charges.
How do I manage all my cards? ›
10 tips for effective credit card management
- Prioritize paying on time.
- Try to pay more than the minimum each month.
- Create a budget and stick to it.
- Review your credit card statement.
- Develop good spending habits.
- Review your credit report.
- Maintain a low credit utilization ratio.
- Use cash back or rewards.
In order to manage the credit cards, you have, here are some pointers which you can follow.
- Check and keep in mind the credit limit on each card. ...
- Choose the right credit card. ...
- Keeping a constant reminder on bill payment dates. ...
- Check the terms and conditions on your credit card. ...
- Frequent check on credit card activity.
Change your due date
Many credit card issuers make it very easy to change your credit card bill due date. You can move your due date so it coincides with your payday, for example, or you can stagger your credit card due dates throughout the month so you don't have to pay multiple credit card bills on the same day.
What is the 50 30 20 rule for credit cards? ›
The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings. Learn more about the 50/30/20 budget rule and if it's right for you.
What is the golden rule of credit cards? ›
Paying your bill in full, on time, every month ensures that you will never pay interest on your purchases. A great way to make sure you never miss a payment is to set up automatic payments from your checking account.
What is the 5/24 rule for credit cards? ›
What is the 5/24 rule? Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.
Not paying on time
But it's best to always pay at least part of your credit card bill on time. Missing or late credit card payments can have a big impact on your credit score and fees.
What are the five C's of credit card management? ›
The five Cs of credit are character, capacity, capital, collateral, and conditions.
What are the new credit card rules in 2024? ›
New RBI rule: Freedom to choose your card network
Starting September 6, 2024, the RBI will prohibit card issuers from signing exclusive contracts with card networks. This means you'll have the freedom to choose your own card network, either at the time of issue or later.
What is credit card management technique? ›
It may be easier to payments each week or biweekly. Here are some other tips to avoid finance charges: If you cannot pay your balance in full, pay as much as possible every week or month. Pay at least the minimum amount due on your statement. Pay on time, every time and do not exceed your credit limit.
How do I use multiple credit cards responsibly? ›
How to manage multiple credit cards
- Keep track of terms.
- Pay on time and in full.
- Know when to use each card.
- Reconsider annual fees.
5 Tips to Help You Manage Multiple Credit Cards and Protect Your FICO® Scores
- Set Up a Budget.
- Keep Track of Spending.
- Schedule Automatic Payments.
- Set Up Account Alerts.
- Monitor Your FICO® Scores.
Having more than one credit card may help you keep your credit line utilization ratio per card lower than the recommended 30% by spreading charges. There are potential benefits to having multiple cards, such as pairing various types of rewards cards to optimize earnings on all categories of spending.
Is 5 credit cards too many? ›
There is no right number of credit cards to own, and owning multiple cards gives you access to different rewards programs that various cards offer. Owning five cards, for example, would give you a bigger total line of credit and lower your credit utilization ratio.
Is it good to have multiple credit cards with one company? ›
Is it smart to have two credit cards from the same bank? If there is a second card from the same bank that complements the rewards or perks you're missing in your first card, it may be wise to go ahead and stick with the same company. You may be able to pair the two cards together to boost the potential rewards.
How does credit utilization work with multiple cards? ›
Your total credit utilization ratio is the sum of all your balances, divided by the sum of your cards' credit limits. So, for example, if you have two credit cards, each with a $1,000 limit, and owe $500 on one and $250 on the other, your credit utilization ratio is $750 divided by $2,000, or 37.5 percent.
