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How to manage multiple credit cards

Last updated on: November 21, 2012 18:12 IST

How to manage multiple credit cards

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Here's how you can do it without burning a big hole in your pocket.

In India, banking habits are increasingly changing and more people now know the significance of banks. People have started using financial services provided by banks and other financial institutions to a larger extent making their life easier and comfortable. One such trend is the usage of credit card.

Credit card is a financial instrument that extends line of credit without any interest for a fixed number of days. Potentially, credit card is the best solution for everyday travel and entertainment, business expense as well as immediate access to cash at any times. Credit card if used effectively can prove to be a lifeline but if used wrongly can prove to be a cause for an individual's downside. Having multiple cards for a responsible person is a boon and it provides lot of benefits as well. It assures financial safety at the time of any contingency, it can help increase your credit score and one can leverage and play with the banks to provide them best perks associated with the credit card.

But when you have more than one credit card, there is a possibility of many complex financial transactions. There are various responsibilities attached to multiple credit cards such as balance transfers, paying down each credit card, proper usage of each card, managing where to keep balance and whether to retain each card or not and many other things comes up when you use multiple credit cards. So, managing multiple credit cards should become priority, as they can really prove beneficial to an individual.

The author is chief marketing officer, Policybazaar.com


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Managing multiple cards is not easy as one default while making your credit card payment can land you in trouble with excessive late payment penalties and negative impact on your credit score as credit score agency works as one universal policy maker. It also gives other credit card providers a chance to leverage as your default can lead them to increase interest rates on your cards which is viewed as a greater risk.

The factors mentioned here can lead you to effectively managing multiple credit cards.


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Consolidate your credit cards

An individual should consolidate her/his credit cards by way of transferring balance on their multiple cards to one card which will help eliminating excess credit cards. By consolidating your credit cards into one card, it will help you getting rid of excess credit cards which you will use unavoidably and get trapped into debt. Debt consolidation is a smart move as it helps decreasing horrible bills and putting them into few or one main repayment.

One can also save money by using a balance transfer card since you will be paying less interest on it than your usual and regular credit card.


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Doing some mathematics

A responsible person can effectively manage multiple credit cards by analysing costs attached with various credit cards. Possession of multiple credit cards can increase your credit cost.

So, analyse cost attached with individual credit card and make payments for the cards carrying maximum interest cost. By this way, you will see your financial cost decreasing as you pay cards that cost more first.


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Internet banking

One can use the Internet to receive multiple credit card statements online saving you time to keep track of things. Moreover, you can use automated payment facilities provided by banks to help you pay your bills on time and eventually saving costs attached with your credit cards.

You don't have to be reminded of payment dates for your credit card and thus save you from late payment penalties which are as huge as your financial bills.


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Payment schedule

An individual should create their payment schedule for their multiple credit cards. Creation of payment schedule will help you in keeping track of all information about each credit card. This schedule should contain current balance, interest rate and payment due date for each card.

It should also contain card number and customer service phone number as it helps you getting your card cancelled in case it is lost or stolen.

It is always important to manage credit cards efficiently else you are sure to end up in trouble and if the factors listed here are implemented and followed proficiently, then there should not be any problem for you managing multiple credit cards.


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