At the time of availing credit cards, most of us are excited about availing various kinds of offers that are shown to us through various channels. This excitement leads us to have multiple credit cards, which is not in itself a bad situation. Owning multiple credit cards means that you have credit cards with a variety of purposes and benefits. While one card would have fuel benefits, then others might be about travel benefits or discounts on shopping and dining. Besides, there are credit cards with complimentary airport lounge access as well.
You might be having multiple credit cards with a view to using some cards for personal expenses and some for business. Then it is likely to be a big task for you just to manage those multiple credit cards. More the number of credit cards and a variety of purposes more difficult it would be to keep track of expenses for each card separately and also remember their due dates. Thus, we have put up a simple 3 step guide to help you in keeping track of the expenses and the dues dates for each of them.
Step-1: Categorize: Categorize your credit cards into two broad categories of personal and business. Once you have separated your credit cards based on these two categorize, you need to make a list of them and sort based on their use and benefits. So one set of shopping cards, another of travel cards, and another of fuel benefits, etc.
When you club the cards with a specified purpose, it becomes easy to choose which card is to be used for lounge access, which on for shopping and which one for travel or Airmiles.
Step-2: Document: Make a spreadsheet with all the basic information about each of your credit cards. Having a spreadsheet will save you from the situation where you have forgotten which card you have or when the payment is due for one of them. Thus, the details that must document in a spreadsheet are:
a) Sign-up Date
b) Credit Card name
c) Annual Fee
d) Credit Limit
e) Annual fee Date
Step-3: Review: You can consult your credit card providers to automate your billing process. Automation of billing will save you from missing any due payment dates. Also, you need to check your credit card statement each month. It’s easier to say, but to manage the number of cards efficiently, it is a necessary step as well.
Not reviewing credit card statements each month could easily cause you to miss important updates like change in interest rates or any new offers by the credit card provider. Thus, make sure to schedule a credit card statement review once a month for all your credit cards.
If you manage your credit cards properly and with responsibility, then it can prove to be nothing short of a blessing. Use the above mentioned simplified guide to manage multiple credit cards and make the best out of them.
SEE ALSO: 8 Silly Reasons behind your credit card rejection
