Keeping multiple credit cards brings some issues like
- Keeping in mind the due date of every credit card
- Confusion of credit cards at different places
- Penalty in case you forget to clear the statement balance
- Annual fee
You can avoid these issues with my tips on managing multiple credit card
Know the single biggest benefit of each credit card
You would miss the chance of saving higher money by randomly using any credit card.
To avoid this, check the biggest benefit of each credit card you hold. It could be fuel, travel, cashback, movie ticket, online shopping, grocery shopping.
Use the credit card based on their biggest benefit. Like I use SC manhattan credit card for grocery shopping, Amex membership credit card for wallet recharge.
Calculate the reward value
The next step is to calculate the reward ratio of each credit card on different spends.
You can pick 1 credit card in case you have multiple credit cards of the same type only if you know their reward ratio
For example,
For shopping on Amazon, I have 2 choices
1. SBI simply click credit card which offer reward value of 2.5% on Amazon
2. ICICI Amazon pay credit card which offers 5% cashback on Amazon
Both the credit cards are good for shopping on Amazon, but if I know the reward value only then I can choose the best one.
Identify one all time credit card
I use Standard chartered ultimate credit card for all my day to day expenses like offline shopping, restaurant bills and fuel.
I get a direct 3.3% reward value on all my spending.
Identify your all time credit card which offers maximum reward value on all the spends irrespective to any specific category.
Use autopay
I personally pay my credit card bills manually but you can opt for autopay option if you hold the savings account in the same bank. The bank would deduct money from your savings account every month to pay your credit card bill.
Use CRED
I use CRED to manage my multiple credit cards, make payments and earn cashback as well.
CRED helps me to see all my credit cards in one place and also notify me on Whatsapp for my credit card statements.
You should also use CRED for managing your multiple credit cards.
For more details check my detailed CRED review
Degrade underutilized Premium card
Paying a high annual fee on premium credit cards is worth if you can get the positive ROI from the credit card.
In case you are not able to fully utilize your premium card, it's better to downgrade to a basic card.
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