The use of credit cards, also known as plastic money, has increased significantly. They make tasks like shopping and bill payments very convenient. Additionally, they offer benefits like cashback and reward points. This is why many people opt to have more than one credit card. However, it is crucial to keep certain things in mind when managing multiple credit cards to ensure you can make the most of their benefits.

Track Your Card Limits

Stay aware of the limits on all your credit cards. Spend no more than 30% of your credit card limit to avoid signalling high loan dependence, which can harm your credit score.

Pay Your Bills Before the Due Date

Always pay your credit card bills on time, especially if you have multiple cards. Set reminders for due dates to avoid missing payments. Late payments lead to hefty interest charges and damage your credit score. Enable auto-pay to ensure you never miss a deadline.

Pay More Than the Minimum Dues

Avoid paying only the minimum amount due on your credit card bill. If you face financial difficulties, use this option occasionally but don’t rely on it. Paying only the minimum increases your debt and can trap you in a cycle of repayment.

Maximize Cashback and Rewards

Make the most of cashback and reward points offered by your credit cards. Use these perks wisely to save money while shopping. However, avoid unnecessary spending just to earn more rewards or cashback.

Limit the Number of Cards You Use

Stick to the credit cards you need. Avoid applying for multiple cards just to have them. Fewer cards make management easier and protect your credit score from unnecessary inquiries. Keep things simple and efficient.

How to Apply for a Credit Card: Step by Step

  • Assess Your Needs
  • Decide the type of credit card you need (e.g., rewards, travel, building credit).
  • Check Eligibility
  • Ensure you meet the age, income, and credit score requirements.
  • Prepare Documents
  • Gather ID, address proof, and income details (e.g., PAN card, salary slips).
  • Choose Application Method
  • Apply online via the bank’s website or offline at a bank branch.
  • Fill Out the Application
  • Complete the form with personal, employment, and income details.
  • Submit Documents
  • Upload or submit your documents for verification.
  • Wait for Approval
  • The bank will review your application and credit score.
  • Receive Your Card
  • If approved, the card will be mailed to your address.
  • Activate Your Card
  • Follow the instructions to activate the card via online banking or ATM.

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A sports journalist driven by passion and dedication, I blend my love for writing and games seamlessly. Currently with Timesbull and having honed my craft at Sportskeeda, Cricreads, and Athlete Fortune,...