These days, when people flash their wallets at the departmental store, you hardly see any one carrying the photos of their loved ones, or other personal memorabilia. All you see will be an array of multiple credit cards offering a glimpse into how the world has shifted its focus today. Earlier, a credit card was known as a ‘plastic of luxury’. People used it in control for emergency purposes, while cash-in-hand was still considered the major priority amongst all classes. However, to day, multiple credit cards are tickets to a huge credit limit, greater financial flexibility, wider access to greater deals and offers and other exciting schemes. But the question is we all need to ask ourselves is: ‘How much is too much?’ Although multiple credit cards may have their own set of pros that come with them, they have a bigger list of disadvantages attached to them. Multiple credit cards are an additional burden to average credit card users, as they struggle to keep track of the different due dates of different credit cards, or find perusing through all the terms and conditions of various banks a difficult task. Whatever the difficulty be, ultimately, it is the credit card user who stands to lose.
Thus, in order to avoid multiple troubles over your head, it is best to maintain two credit cards at the most. These credit cards can come in handy at all times, and their use can be interchanged in accordance with your convenience. The issue of a lesser credit limit can also be overcome in this manner. Customers need to be prudent in order to safeguard their much coveted credit rating system. Often influenced by greed, customers tend to make hasty decisions of getting into more credit card deals. Banks also go with the tune – the more the merrier, and end up drawing customers to their schemes with the help of aggressive marketing campaigns. In order to effectively and efficiently maintain your credit cards, rank your cards in the order of their priority as first preference card, second preference and so on, in case you hold more than two credit cards. Rate a card as your first preference choice if it provides a lot of features and benefits that are in sync with your need. Use cards in these specific orders. Keep a track of the due dates of all the cards held by you. Try and clear all your credit card dues a few days prior to the stipulated date in order to give sufficient processing and receipt time by the credit card house. Try and set a reminder in your watch or mobile phone about such dates in order to avoid any late payment charges or penalties.
Also, save yourself from the vicious debt trap by avoiding too much expenditure on your hands. If you are spending around 30%-40% of your salary towards your credit card bills, then you have some reason to worry. This is because such a vast expenditure on the clearance of debt would lead to diversion from your goals. You may be forced to opt for personal loans or a home loan to finance your requirements. Also, never stack your outstanding credit card balance by either refraining from payment or solely clearing your minimum due balance. Avoid any careless acts such as skipping your payments or making late payments as it would not levy additional fines and penalties, but you would also have to bear the brunt of exceedingly high interest rates that are applicable from your next credit card transaction itself. In addition to this, the prospect of ruining your credit rating can also be at stake. Thus, do not fall into the trap of ‘the more the merrier’ by taking multiple credit cards in your name.