The power of credit cards cannot be undermined. They not only bring about convenience but also help you tide over shorts periods of financial crunches. But if not used in the right manner, these cards can turn into objects of financial destruction. High-interest costs and revolving debt can prove very costly for anyone.
When the benefits of holding a credit card are evident, many individuals look to own multiple cards thinking that the benefits will be doubled, tripled or even quadrupled. It is true that having more than one card also brings in more benefits, but one has to successfully manage multiple cards. This may not be everyone's cup of tea.
Additional Reading: Be Mindful of These 9 Points While Using Your Credit Card
So we bring you a simple guide on how to successfully manage multiple credit cards.
1. Draw up your credit card budget: No matter how boring it sounds, budgets are essential. It is good to draw up a list of expenses that you look to pay from your credit card. While doing this split up expenses between the cards and see if it is within the credit limits of each card. Also look to keep the credit utilization ratio low on the cards. Remember, if you use up the entire limit on your cards, your credit score is going to get affected.
2. Get your payment dates right: The more the number of cards, so will be the number of due dates for outstanding balances. If you want to reap the benefits of having more than one card, you would have to keep a track of due dates and not let it get mixed up. Unpaid balances not only affect your credit score but also would burden you with interest and late payment fees.
Additional Reading: 5 Rules for Your First Credit Card