Managing Multiple Credit Cards
Is it really possible for one to own multiple credit cards at any one point in time? The answer is yes. I have about 6 credit cards in total and thankfully, I am not in credit card debt. How do I manage multiple credit cards without getting into debt and at the same time, reaping all the benefits from the credit cards eg. rewards points and cash backs for my purchases? Let me share with you some examples.
Firstly, understand that the interests accruing on credit card debts are probably one of the highest chargeable amongst all the financial facilities granted by a bank. With interest rates reading something like 20% or higher in some countries, you would be foolhardy to take credit card debts lightly. So, make it a point not to accrue any interests by paying your outstanding amount in full monthly.
Secondly, having appreciated that it is in your interest to pay in full every month, make it a point to track your expenses incurred on your credit cards. Do not overspend. It is easy to overspend since you need not empty your wallet of your cash as all you need to do is just to swipe your card. Set a budget for your monthly expenses and if you intend to spend on something luxurious or special for that month, set aside a sum of cash and put it away in a deposit or something which you can withdraw when it is time to make your credit card payment.
Thirdly, choose and use your credit card wisely. It is my habit to park all my credit card use on one particular card. This card gives me the best rewards points per dollar spent. When I park all my expenses on that card, my rewards points grow faster and this would allow me to redeem it with something I like later. Some cards have specific benefits eg. cash back for petrol purchases. With that in mind, I use that cashback credit card solely to pump petrol. I keep the rest of the cards for emergency use. It is good to have 1 or 2 credit cards on standby in case you need extra cash during emergency situations. Apart from that, just keep them aside.
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