Manage your credit card in this method

If you have multiple credit cards, then decide on a different purpose for each card

In today's era, credit cards have not only become a necessity but also an important part of financial planning. Having cards does give benefits, but if they are not managed properly, they can also create a financial crisis. If you have more than one credit card, then it is very important to adopt some smart strategies to manage them.

■Use them differently

Instead of using all the credit cards in the same way, divide them according to their benefits like one card for shopping and cashback, second for travel and hotel booking and third for emergency fund etc. This will keep your expenses under control and you will be able to use the rewards properly.

■Track payment due dates

Each credit card has a different billing cycle. If you do not make the payment on time, then there are late fees, high interest and credit score gets spoiled. Note down the due dates of all your cards and set reminders so that you don't miss any payment.

■Keep an eye on the limit

1. Using a credit card excessively or spending close to the limit hurts your score.

2. Try to keep your credit utilization ratio below 30%.

3. If possible, use different cards for big purchases so that the limit of any one card doesn't increase too much.

4. Request an increase in your credit limit from your bank from time to time, but don't spend too much.

■Monitor your expenses

Review your credit card statement every month to spot unnecessary transactions or fraud immediately. Confirm with your bank about any suspicious charges or changes in interest rates. Don't be careless about it.

■Keep an eye on the billing cycle

Usually, you get a credit period of 40-50 days. If you have more than one card, plan your payments keeping in mind the billing cycle so that your cash flow is not affected and interest does not increase.

Also adopt these

■ Adopt auto-debit facility:

Activate auto-debit feature from your bank account to ensure timely payment.

■ Understand hidden charges:

Be aware of annual fees, late payment charges and other charges, do not pay more money unnecessarily.

■ Understand EMI options:

Choose interest-free EMI options for big expenses so that there is no pressure to pay a lump sum amount. The balance is also maintained.

■ Create an emergency fund:

Instead of depending on the card, keep an emergency fund so that you do not use the credit card excessively in case of sudden need.

■ Choose the right card:

Keep cards that give benefits and rewards as per your expenses, it would be better to close the rest of the unnecessary cards immediately.