4 Tips to Efficiently Manage Credit Cards
Technology has largely made lives simpler for us. One effective way is the introduction of financial tools, such as credit cards.The most significant advantage of credit cards is that it increases the purchasing power of buyers. Some credit cards also provide you with reward programs. They also offer convenience and are efficient for online shopping or while travelling. With a credit card, you can be assured that you are monetarily secured even when you do not have the cash to pay for things.
(Image : Shutterstock)
During emergencies with unforeseen expenses, having a credit card proves to be beneficial. However, if you have multiple credit cards, it can become challenging to manage them. Here are some tips for you to handle your credit cards with competence:
Keep In Mind The Credit Limit Of Each Card
An effective way to maintain multiple credit cards is by checking the credit limit of each card and planning the finances accordingly to pay the bills. You must learn the lesson from other people who continue purchasing their credit cards without checking the limit. They end up having a large number of bills to pay. One way would be by splitting your monthly expenses amongst the credit cards to prevent excess expenditure on one single card.
You must check the credit limit on each card when you make a transaction to manage your credit cards better. The bank offers a specific credit limit on a credit card, depending on your credit score and history. If you have a low score, your credit limit will be lower.
Use the Right Card When Buying Stuff
If you have several credit cards, you must ensure that you purchase items using the right cards. Another factor to consider is the rewards and offers that the bank provides you. Particularly while buying stuff online, you can find rewards of using credit cards from specific banks. If you want to save more, use the credit card over which you find more discount offers.
When you purchase a credit card, you should also keep in mind the fees and penalties. There are some credit cards that are free of cost for the first years but have an annual fee after that. You must research thoroughly and read the terms and conditions before buying them.
Ensure That You Pay Bills On Time
With multiple credit cards, it is crucial that you have a constant reminder for the due dates of bill payments for each card. Credits cards from various banks have different payment dates. There are ways such as a phone reminder which will enable you to not miss out on any of the payment dates of your cards. Otherwise, you can also opt for an automatic payment option. The failure of payment on time of any card can adversely affect your credit score. It will also hamper your chances of future credit.
Maintain A Check On Each Credit Card’s Activity
The ownership of multiple credit cards means several transactions with different values. You should keep track of each card. With numerous credit cards, there is a possibility that your family members also use them for purchases. There can be a considerable amount of debt due to constant transactions. Therefore, you must be aware of the activity on all your credit cards. There can also be chances of fraudulent activities, which can be avoided with frequent checks on the activities of the cards.
Having credit cards has become essential in this fast-paced world. You must research thoroughly before you apply for credit cards. Reputable banks like Axis Bank offer credit cards with attractive interest rates and other benefits. They also provide appealing reward programs and efficient customer service to ensure that you get a satisfying shopping experience. Just remember to get your eligibility checked before you apply for a credit card.