Using a large number of credit cards certainly doesn’t hurt, especially if those cards do have good benefits in our lives, where the credit card can make our financial affairs easy and smooth. As long as our usage is good and the payments we make run smoothly, then having a number of credit cards is not a financial problem. However, what happens if a number of credit cards actually make us experience difficulties in managing finances?
Most people will agree if it is said that anything that is excessive will not be good and can bring us into a number of problems and difficulties. This also applies to credit card ownership, where the more cards we have, the harder it will be for us to regulate and control their use. It would be very wise if we only have a number of credit cards that we really need, and so we do not need to save the risk of misuse or improper use of these cards. Check out a few points below, related to usage and also the correct credit card management.
When we have a credit card for the first time, we must have full awareness of the amount of funds contained in it. Credit cards are not loan facilities or more funds provided by banks for free. Understand well that all the transactions we do with a credit card are the debts we have to pay if the bill comes. Use a credit card that provides maximum benefits and is issued by a bank that can be trusted.
Avoid Using Many Credit Cards
There is no point in having a lot of credit cards. This can actually trigger us to do a number of unnecessary expenditures and generate a number of debts in the future. Think of using only 1 or 2 of the best credit cards that provide many benefits. Avoid unnecessary purchases by using a credit card that we have. Don’t shop with a credit card, if you don’t get a number of benefits.
Adjust Credit Limit with Income
It would be very wise if we only use credit cards with the right limit. That is, the limit is in accordance with our income. Do not let us have a number of credit cards whose limits are very far or tens of times the amount of our fixed income every month. This is very dangerous for our finances, especially if we have difficulties in controlling spending.
There are times when banks provide credit card facilities very easily, even when we only make unsolicited submissions (not so hopeful). Things like this can make us have a number of credit cards that are not used optimally, and this is not good for your finances. Do a closing on a credit card that is not / rarely used, then select the credit card that gives the most benefits to us. This closure can be done by considering several things such as: the amount of interest charged by the bank, the offers and features provided by the bank, the various costs that we must pay, and also the various benefits that we can get.
Perform Closure Gradually
If we have a plan to close some of the credit cards we have, then don’t do that at the same time. This will affect our BI Checking. Make a gradual closing, pause a few weeks between closing one card with another.
When you have several types of credit cards, you can be sure that you will have one favorite credit card. Usually this credit card will be the most often we use in various financial transactions that we do. This is not good, because automatically we will very rarely use other credit cards that we have. Rotate the use of the credit card we have, use these cards regularly and alternately so that all cards can be used.
Choose a Card with the Lowest Interest Rate
Each bank will certainly apply various policies on the credit card they publish, including determining the interest rate they charge on the credit card. There are many banks that offer low interest rates for their customers, and we can consider this especially if we have a habit of not paying all bills every month.
Request an Increase in Limit
Limit is small and has never been up for a while. This is one reason for many people to use more than one credit card in their lives. The point is only one, the credit limit provided by the bank is insufficient for various financial transactions. This is certainly a problem, especially for those of us who have a number of solid activities in finance.
Don’t hesitate to ask for a limit increase on the credit card issuing banks that we use, especially if we have been their customers long enough. But if the bank rejects the increase in the limit that we ask for, then there is no harm in replacing the credit card with a credit card from another bank that is willing to give a larger limit.
Avoid Use Over Limit
If using a credit card to reach the maximum credit limit, things like this will only make our credit score worse. Use a credit card at a reasonable limit, around 40% of the limit given by the bank.
Get Rid of All Bills
Pay off all purchases and also the various costs incurred on our credit card, especially annual fees. Do not let a number of debts and arrears make our credit score worse in the eyes of the bank.
Fulfill Obligations as a Card Holder
Whether or not we are successful in managing our credit cards, of course, will depend on the mindset and lifestyle that we live. Credit cards are banking facilities that are provided with the aim of facilitating various financial transactions, not to make this difficult for us in the future. Use wisely and pay with discipline.