Credit cards, or plastic money as they are popularly known, have become an indispensable tool not just in the metros, but also in rural areas of the country. With this fast-rising popularity, banks are introducing new credit card schemes or are aiming for co-branding, in order to offer better value and deals to the customer. With several credit cards competing in the market, issuers of new cards view existing users as their ideal target market, and users sign up for them in order to acquire a higher credit limit. Thus, they end up with multiple cards on their name. While there is no written rule prohibiting one from holding multiple cards, management and payment towards them can be quite a challenge. However, if you play your cards wisely, these cards can offer several benefits to you, enriching your experience. Some all-important tips are:
a) Retain relevant card details with you at all times, mainly the card number, name of the card holder, date and period of validity, besides important helpline numbers. Make backup copies and preserve them as they can prove useful when a card is lost or misplaced.
b) Opt for free credit cards as they will prove to be a good deal in the near future. Stay away from cards that charge an annual fee, for the simple reason that it may burn a hole in your pocket.
c) Set preference for the credit cards held by you depending on their acceptability, annual fees (if any), internet features and accessibility, besides other important features. Rank them in this order and the card that tops on all features should be set as first preference card, and so on.
d) Set a third preference card for online purposes. Often, investors can be wary of providing the card details online, for fear of being hacked or might have to face such unethical intrusions. However, this issue can be addressed by fixing a limit on the third card, thereby using it to cater to online transactions. Also, since PIN activation on credit cards can be an expensive affair, activate the code only for this card, and use it for emergency transactions.
e) Construct a plan to enjoy maximum utility with your cards. If you belong to the salaried class, then use your first preference card until you reach its limit. In this manner, you can keep a record of all your expenses in one statement of account, which will also lead to faster redemption of your reward points that belong to one account. If you have funds from different sources, then use your first preference card for half a month, and your second preference card for the rest of the month. In this way, you can avail maximum credit from your cards. Your third preference card can be used for emergency payments and contingencies.
f) Keep a track of offer schemes on your credit cards and avail them on a regular basis. While you should carry only your three preference cards with you at all times, in case you hold more credit cards, store them safely. Watch out for special discounts and offers on all your cards and do not miss out on opportunities that spell savings for you.
If you come across credit card products that offer better deals to you, then enroll yourself and redefine your preferred cards in order to enjoy maximum benefits and advantages from them. But unlike any other forms of debt, credit card too can be very expensive if you fail to comply towards its repayment requirements. You might actually end up borrowing debts like personal loans or any other forms of privately lent loans in order to pay to the debt mounted on your credit card. This is bound to drastically reduce your financial capabilities thereby creating dents in your future. In order to avert any such circumstances all you need to do is read the terms and conditions and understand the repayment requirements and stick to them religiously.