How to Manage Multiple Credit Cards

Posted on Thursday, September 14th, 2023 | By IndusInd Bank

Credit cards are extremely useful tools for managing finances. Different credit cards offer distinct benefits and rewards, thus, it is tempting to carry multiple credit cards. However, managing them properly is crucial to avoid debt traps.

This blog addresses the points to consider before you apply for multiple credit cards and the strategies you can follow for effective management of your credit cards.

Points to consider before applying for multiple credit cards

These days, the process of applying for credit cards has been simplified, thanks to technology and digitalisation. You can apply for credit cards online through the bank website or the mobile application.

For your convenience, IndusInd Bank has a 100% digital application process. You can apply for an IndusInd Bank Credit Card from the comfort of your home, without the hassles of visiting a bank branch or submitting lengthy paperwork. All you need is your PAN and Aadhaar details  and complete the video KYC process, at any time, from anywhere.

Although this ease may tempt you to apply for a credit card right away, there are a few points you must consider before you move ahead –

1. Check your credit score

If you require additional credit cards, you must ensure you have a good credit score. A good credit score will get you through the approval process quickly and get the credit card you desire. 

2. Assess your financial condition

Before you apply for a new credit card, make sure you have evaluated your current financial situation. If adding a new credit card will help you manage your finances better, it will be a suitable decision for your financial situation.

3. Assess your requirements 

You must have clarity on why you need the additional credit card – does it offer better reward points, a higher credit limit or better offers suited to your lifestyle? 

IndusInd Bank offers a variety of instant credit cards that have been designed to sync with the requirements of every customer.

For instance, if you are a frequent flyer using Vistara Airlines and are always on the go, the IndusInd Bank Club Vistara Explorer Credit Card is the perfect fit for you. It provides complimentary Club Vistara Gold Membership and exclusive services, including priority check-ins, priority boardings and additional baggage allowance. 

4. Conduct research

Conduct thorough research and have a look at the various credit cards being offered. Compare them on various parameters, like annual fees, interest rates, rewards programs, and promotional offers.

5. Review terms and conditions

Go through the credit card’s terms and conditions and have a clear understanding of the rules, responsibilities, penalties and programs that accompany the card. If you are not clear on any rule or condition mentioned, you must clarify it with the bank.

Strategies to maximise the benefits of credit cards

Having multiple credit cards can benefit you in many ways. They offer financial flexibility in times of uncertainty, help you make big purchases, and allow the use of various reward programs. There are a few strategies that will enable you to maximise the benefits of your credit cards.

1. Planned spending

Every credit card comes with an interest-free period (the period between the transaction date and the due date). Except for cash withdrawals, interest is not charged on transactions during this phase. You can time your big purchases by distributing them across various cards and make optimal use of this interest-free period.  

2. Reward programs

Plan your big expenses on credit cards that give you better reward points or cashback. 

For instance, the Platinum Aura Edge Credit Card offered by IndusInd Bank allows you to select from 4 different reward plans, and earn up to 8x reward points on specific merchant categories, as well as get a 1% waiver on fuel surcharge.

3. Redemption of points

Keep track of the expiry date of the reward points you earn. You can use these points to avail of vouchers or discounts from various merchants associated with the bank or financial institution.

Notably, IndusInd Bank Credit Card Reward Points never expire. You can redeem the reward points earned via IndusInd Bank Credit Cards anytime you require, without worrying about expiry. The bank even allows you to convert your reward points to cash credit, which can then be used to pay your credit card bills too!

Strategies to manage multiple credit cards

1. Auto-payment 

If you miss out on your credit card payments, it could negatively affect your credit score. A bad credit score could prove problematic when increasing your credit card limits or availing of loans in the future.

Setting up auto-payment of your credit card bills can ensure that you never miss the deadlines and your credit card bills are paid in full every month. Just ensure that your account is adequately funded for the payment of your bills.

2. Digital apps and tools 

Many banks and credit card providers offer apps and tools for monitoring your credit card spends. They are useful for tracking expenses, getting real-time updates, checking account balances, and a lot more. These apps and tools can prove extremely useful for managing your credit cards.

3. Credit card limits

If you want a healthy credit score, ensure you never use the entire credit limit available at your disposal. The key to ensuring a healthy credit score is keeping the credit utilisation ratio to 30% or below. 

4. Categorise your cards

Categorise your expenses into groceries, fuel, apparel, technology, travel, and multiple forms of spending. Next, categorise your credit cards and allocate a card to these categories. This will help you reap the maximum benefits from your specific cards and ensure you do not cross the limits assigned to each card.

5. Review annual fees

If your credit cards come with a cost, i.e. annual fees, assess these cards periodically. Spending habits change with time, and paying a high fee for a credit card that is not useful any longer. Credit card providers might also bring about sudden changes in the fee structure, so it is wise to monitor the charges you pay for each credit card on a regular basis. 

Conclusion

Effective management of credit cards requires discipline, knowledge, and good financial management skills. When you organise your credit cards well, you will be empowered with rewards, financial flexibility, and a good credit score. Get yourself credit cards that match your needs and financial goals.

IndusInd Bank can be your trusted partner in your credit card journey. With the vast array of IndusInd Bank Credit Cards available, you can rest assured that the rewards and perks of each credit card will help you utilise their potential to the fullest. Apply now and get an instant credit card approval!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.