Managing multiple credit cards

If you credit cards of three or four banks, you need to manage your spending on all these cards as well as manage their payments cycles in a systematic manner. Having multiple credit cards is undoubtedly an advantage as it increases your credit limit manifold, but if the bill payments of these cards are not managed properly, then the advantage could turn into a disadvantage. This is because habitual late payment, or worse, non-payment of a credit card bill reflects poorly on your creditworthiness and, therefore, your credit score, besides costing you stiff pay late payment fee and high interest charges. So, how does one manage multiple credit cards systematically?

The first thing to do is to keep a record of payment due dates of all credit cards. The bills usually become due around the same date every month, so it is a good idea to set reminders two to three days before the due dates. This would enable you to make payment well on time and avoid paying late payment fee and interest charges.

To avoid being over-leveraged, it is essential that you manage your spending well. So, it is better to avoid splurging just because you have lot of plastic money in your pocket. Spend wisely and spend well, so that you don’t get into a debt trap. You may use all your credit cards for your shopping and availing various services, but these should not be used indiscriminately or for frivolous purposes. Keeping a tight control on your credit card spends is the best way to manage all your credit cards.

Lastly, if you do not use all your credit cards, it is better to close down card(s) that you seldom use and have, therefore, virtually become inactive. No doubt, this will reduce your credit limit, but since you are not using the card(s) anyway, it is as good as an inactive card. Besides, closing down inactive card(s) will save the annual fee that you pay for keeping the inactive card active!