Credit Insights
Tips to manage Credit Cards like a pro
You need to do more than just paying the minimum payment on your Credit Cards and here's why.
Key insights
How to manage Credit Cards? Start by jotting down their details.
Auto-payments are also an answer to how to manage Credit Cards.
Set a spending cap for every card and stay committed.
These days, there’s an abundance of choices available to us. From a variety of OTT platforms occupying our leisure time to numerous services listed for convenience, there are many options to consider.. Likewise, owning different Credit Cards takes my spending experience to the next level as I enjoy exciting deals on almost every swipe.
While juggling Credit Cards can get overwhelming, it's not as complicated as it sounds. I have figured it out.
Let me share how to manage Credit Cards and continue enjoying the awesome benefits they offer.
Navigating the multiple Credit-Card universe
From travel to dining to shopping, each Credit Card caters to a specific expense category, and owning multiple cards makes all the more sense. Over time, as I became the proud and responsible owner of my Credit Cards, I developed a 5-step system that makes juggling Credit Cards a breeze.
Wondering what this system is? Read on:
Step 1 – List it out
First and foremost, list all your Credit Cards. Mention details like expiry date, related benefits, credit limit, billing cycle, annual fees, late payment fees, etc.
It serves as a source of complete information about all your Credit Card details for easy financial management and informed decision-making. Interestingly, it requires no special skills; the basics are good enough.
This activity makes it easy to plan spending, track rewards, and make your cards work to your advantage. A systematic approach like this makes juggling Credit Cards way easier than you think.
Step 2 - Carve out specific roles
Next, assign a specific role to each card. This helps maximise Credit Card rewards by leveraging each card’s unique benefits. Mixing up cards and using them for non-assigned expenses is a big no.
For example, you may keep aside one card especially for buying groceries, another for fuel purchase, the next one for travel, and so on. Do keep in mind the specific card features before assigning any role. This way, you can make the most of reward points and offers.
Such dedicated end-use is one of your answers to how to manage Credit Cards. Ensure your cards stick to the role assigned to avoid juggling Credit Cards.
Step 3 - Draw financial boundaries
Fixed spending limits are also an answer to the question, “How to manage Credit Cards?”. Let me explain.
If you have multiple Credit Cards, set a spending cap for every card and follow it diligently.
Giving in to temptations and spending more than budgeted may give you temporary gratification, but also long-term financial stress. Ultimately, staying in control of finances leads you to the path of financial freedom.
Step 4 - Befriend auto-payments
You know that you can automate your Credit Card payments, right? Simply opt for ‘Auto Debit' and relax as your Savings Account takes charge of timely bill payments.
Timely Credit Card payments can strengthen your credit score over time and vouch for your creditworthiness. Potential lenders will view you as a responsible borrower, and you can finance your major goals, like buying a home, confidently.
Thus, auto-payments are your answer to “How to manage Credit Cards?”, helping you with juggling Credit Cards like a boss.
Step 5 - Keep a close watch
Here’s the final step to get the complete answer to the question, “How to manage Credit Cards?”.
Regular reviews help evaluate if you are on track and if your Credit Cards are serving the desired purpose. It gives you a reality check of your spending.
Choose the periodicity that best suits your needs and start juggling Credit Cards stress-free. Fortnightly reviews allowed me to take corrective measures before the bill was generated.
