More than one credit card?
That means you are a splendid individual who knows how to manage his/her finances efficiently.
In that regard, most UK people indeed have at least one credit card with them.
And they are happy with it.
The UK has been one of the countries that are financially known for being one of the most organised nations in the world.
Business runs in its veins, and such a country will obviously be careful and sincere with money, isn’t it?
Now, the question is about credit cards and that too many of them are for a single user.
More credit cards mean access to more money and advanced flexibility on making payments be it for whatever reason.
But, it is also true that managing more than one credit card means elevated usage of finance strategies and monitoring so that you don’t end up missing payments.
Again, it is a wrong idea that you need a high income to afford more than a single credit card. You can easily afford two credit cards, in which you’ll allot one for professional uses while the other for personal expenses.
But, these words will only make sense if you are knowledgeable on a few ways that ensure your credit cards – all of them – are used rightly.
Let’s Keep These Things in Mind While Using Many Credit Cards
You might think that using many credit cards can lead you to miss payments than using just one.
Yes! We are thinking of credit card debts and low credit scores right now.
Although taking out a loan for very bad credit from a direct lender with no guarantor can quickly fix the issue, most multiple credit card owners do not get caught in such credit debts.
On the contrary, many using a single credit card with even a satisfying income are paying high-interest rates or are probably taking out bad credit loans to fix credit debts or bad credit scores.
Well, let’s not get appalled. We can still make this go well with the following tips on using more than one credit card:
- Don’t Miss Payments with Automation
- Review Credit Score
- How Many Cards Are too Many Cards?
- Diversify Your Credit Cards
- Check Their Costs
Using multiple credit cards is actually good. You will get to know about a lot of other factors from them when you will be using them.
With that being said, now let us focus on what we can learn from these mentioned points.
1. Don’t Miss Payments with Automation
Credit cards come with a monthly bill. For some months after purchase, some special credit cards can charge you that monthly bill without any interest rate.
You also have to pay an annual fee for affording a credit card. But, few cards come with zero annual fees as well.
But a few months later, most credit cards use an interest rate on the outstanding balance. You need to pay this interest rate along with the payments you have made using the credit card, which will come to you in the form of a bill.
Once you miss paying one such bill, you’re going to have to suffer its consequences with a high-interest rate in the next month.
Isn’t it better not to let that problem take place?
Making monthly payments not only secures you from extra expenses, but it also makes you get credit card rewards and offers as well.
And that saves money.
You can talk to your bank or your credit card provider to automate your monthly payments. Try to negotiate to customise this option more by automating the nominal fees or minimum amount or full amount etc.
Using a mobile app to automate your payments for all the cards is also an option. Payments can be better managed with an app, and you will not miss them for sure.
2. Review Credit Score
Reviewing credit scores can be an easy thing. Reviewing your credit score can make you track your money in a better way.
When you are using your credit cards, your credit score can fluctuate. Your credit score defines the quality of your credit card management.
The thing with credit card scores is that they are pretty sensitive.
Credit scores can go low for a variety of factors. In this regard, it must be stated that not paying your monthly payments can also affect your credit score.
Multiple credit card scores can be tricky to monitor and manage. But you can still take care of that if you watch it regularly and manage your score.
If that goes down, then taking out a loan for very bad credit from a direct lender with no guarantor can be the best solution as these loans can pay off your debts or make payments and make sure your credit score stays high.
3. How Many Cards Are too Many Cards?
Well, this answer depends on the usage you are making with them.
Many credit cards don’t mean that you need 10 or 20 of them.
The truth is that you can keep a handful of just 4 to 5 credit cards.
In that regard, you can say that you are a business person who can manage 4 to 5 credit cards for professional reasons reserving one in them for personal usage.
For an executive, 2 credit cards can be enough. You can use one for your professional purposes while the other for personal causes.
4. Diversify Your Credit Cards
Your credit cards can be diversified more and more with simple ideas and tricks.
For example, you might be using a normal credit card from a financial institution or your bank.
But it is also true that you can purchase a credit card in a different sense.
There are many credit cards out there that come with zero per cent APRs.
Plus, you can also purchase a credit card with cashback offers.
So, if you use a credit card with standard fees and another affordable one with zero APRs or cashback offers, then you also get to save a lot of money with it..
5. Check Their Costs
The thing is comparing services.
In case you feel that your credit card costs are to be checked, you are taking the NEXT BIG step to maintain more than one credit card.
You can definitely make the best financial decisions with a credit card cost comparison.
To do that, you can go ahead and search the Internet for favourable costs and prices for credit cards.
Some apps can also help you compare regional prices and get the best offer.
Go ahead and make the most affordable choice.
At least, you won’t be bothered about making extra payments.
Be sure to check different lenders, too, if you’re taking out a loan for very bad credit from a direct lender with no guarantor anytime soon.
There are also finance advisors out there.
If needed, you can have a word with them regarding your multiple credit card usages and bad credit loans.