6 Tips to Use Multiple Credit Cards Smartly

Managing your monthly expenses with just one Credit Card can sometimes be insufficient. Although using multiple Credit Cards is an option, it is essential to handle them wisely. While using different cards for various purposes might seem convenient, juggling numerous cards with different payment due dates and interest rates can be challenging.

Therefore, it's crucial to manage your Credit Cards wisely and effectively to take advantage of each card's exclusive benefits and features. Here are some tips to maximise the benefits of your Credit Cards.

1. Justify having multiple cards

You get more value from every card you own if each serves a specific purpose. This way you can reap more benefits from separate cards as opposed to having two cards with the same purpose. HDFC Bank Credit Cards provide myriad exclusive benefits. Reward schemes, easy EMI options, free movie tickets, discounts on dining, frequent flyer miles, Reward Points, and discounts are some features you get with HDFC Bank Credit Cards.

2. Enable automatic payments

Managing multiple cards can be tricky. Setting up an automatic payment from your bank account can simplify repayments across all your cards. You can opt to pay the minimum, full, or nominal amounts each month. It is vital you do not miss out on repayments – this way, you can maintain your credit score and avoid incurring interest charges on overdue payments.

3. Review Credit Card costs

Credit Cards come with annual fees, interest charges, and other costs, which are multiplied when you have more than one card. You should assess your needs and decide whether your cards give you more value than they cost. If certain cards cost you more than they benefit you, consider cancelling them and stick to the ones that work best for you.

4. Check your credit score

If your cards carry a large debt, it may compound with each passing month and can ultimately hurt your credit score. So, keep track of your credit history and score to ensure that your spending habits are sustainable in the long run.

If managing bills seems challenging, HDFC Bank Credit Cards let you transfer unpaid balances from one card to another. If you are falling behind on your bills on one card, you can transfer your balance from your other card.

5. Fix statement due dates

Keeping track of different Credit Card payment dates can be difficult. Contact your Credit Card issuers and fix a date to pay your dues. For example, you may set the payment dates at the beginning of the month. Alternatively, if you have multiple income sources and each credit earnings on different month dates, you could set up dates spread across the month – do what suits your needs best.

6. Restrict the number of cards you use

While there's no ideal number of Credit Cards one can own, and no harm would come your way if you manage them intelligently, it is only wiser to stay moderate with the number of cards you have in your wallet. Not only does managing them consume your productive time, but they can also create a visible hole in your wallet regarding the annual fees you pay without using them.

Additionally, there are late payment charges and interest charges if you miss your due date or don't pay the outstanding in full and the extent of the hole becomes more glaring.

Try to limit the number of Credit Cards to just two and, based on your needs, manage them smartly to save money and time. If you pay all your Credit Card bills on time, you can open doors to CashBack, Rewards, Discounts, and many other benefits.

Looking to apply for an HDFC Bank Credit Card? Click here to get started!

Wondering how to choose the best second Credit Card? Click here to get started!

* Terms & conditions apply. Credit Card approvals are at the sole discretion of HDFC Bank Ltd. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.

Apply for a credit card online and enjoy benefits like cashback offers and exclusive deals.