6 Tips to Use Multiple Credit Cards Smartly
Often, a single Credit Card just isn’t enough to manage one’s monthly expenses. While nothing stops you from using multiple Credit Cards, it’s important to go about it smartly. On the face of it, using different cards for different purposes seems convenient, but it can be challenging to juggle multiple cards with multiple payments and interest rates.
Therefore it is important to manage them smartly, if managed wisely, you can avail of exclusive benefits and features offered by various cards. Here are some tips to get the most out of your Credit Cards:
- Justify having multiple cards
You get more value from every single card you own if each of them serves a specific purpose. This way you can reap more benefits from separate cards as opposed to having two cards with the same purpose. HDFC Bank Credit Cards provide myriad exclusive benefits. Reward schemes, easy EMI options, free movie tickets, discounts on dining, frequent flyer miles, Reward Points, and discounts are just some of the features you get with HDFC Bank Credit Cards.
- Enable automatic payments
Managing multiple cards can be tough. Setting up an automatic payment from your bank account can simplify repayments across all your cards. You can opt to pay the minimum amount, the full amount, or a nominal amount each month. It is important that you do not miss out on repayments – this way you can maintain your credit score and avoid incurring interest charges on overdue payments.
- Review Credit Card costs
Credit Cards come with annual fees, interest charges, and other costs, so this is multiplied when you have more than one card. You should assess your needs and decide whether your cards are giving you more value than what they cost. If certain cards end up costing you more than they benefit you, consider cancelling them and stick to the ones that work best for you.
- Check your credit score
If your cards carry a large amount of debt, that can compound and have a negative impact on your credit score. So keep track of your credit history and score to ensure whether your spending habits are sustainable in the long run.
HDFC Bank Credit Cards let you transfer unpaid balance from one card to another, so if you are falling behind on your bills on one card, you can transfer your balance from your other card.
- Fix statement due dates
Keeping track of different Credit Card payment dates can be difficult. Contact your Credit Card issuers and fix a specific date to pay your dues. For example, you could set up the payment dates to be at the beginning of the month. Alternatively, you could set up dates spread across the month – do what suits your needs best.
- Restrict the number of cards you use
While there’s no ideal number of Credit Cards one can own, and no harm would come your way if you manage them intelligently, it is only wiser to not go overboard with the number of cards you have in your wallet. Not only does managing them consume your productive time, but they can also create a visible hole in your wallet in terms of annual fees you pay without using them. Add late payment charges and interest charge if you miss your due date or don't pay the outstanding in full and the extent of the hole becomes more glaring.
The better way then is to limit the number of Credit Cards to just two and based on your needs manage them smartly to save money and time. If you pay all your Credit Card bills on time, you can open doors to CashBack, Rewards, Discounts, and many other benefits.
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* Terms & conditions apply. Credit Card approvals are at sole discretion of HDFC Bank Ltd. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
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