A credit card is the most convenient financial tool for emergency payments. It not only allows one to purchase an item when needed and pay for it later but also offers various rewards upon making payment. Speaking of which, people even prefer keeping multiple credit cards to take advantage of the rewards; however, this comes with a huge responsibility. It is important to strategise them in line with one’s credit limit and make bill payments on time.

Here are a few things to manage multiple credit cards:

When using multiple credit cards, get the right cards, suitable for expenses and finances. As credit cards offer a lot of benefits, getting multiple cards can provide the most rewards.

It is also important to make a budget before taking multiple credit cards. Prepare an estimate of how much you can spend and then how you will clear the bills. Having a monthly estimate according to your finances will help you make payments on time.

Credit cards always come with some sort of annual fee. In the case of multiple cards, customers will have to bear these expenses. Apart from the annual fee, card issuers also levy ATM withdrawal fees, late payment fees, and joining fees. Understand all the charges when getting new cards.

One should not go overboard with the number of credit cards they own. While there is no accurate number of cards that you should own, they should be taken based on financial capacity and expenses. Having a lot of cards can add to your costs due to the annual charges and related fee, besides the pending bills.

Check the credit limit when buying multiple credit cards. Banks offer different credit limits on their cards, which is why you should keep track of your limits on every card to avoid going overboard with the expenses. The credit limit is decided on the basis of the customer’s credit score and credit history.

When managing multiple credit cards, you should go for effective strategies to set up automatic payments. The feature also allows you to directly make bill payments from bank accounts, thus reducing the risk of missed payments for one card or another.

In the case of several credit cards, one should make strategic use of the various rewards and cashback. Use the cards that come with the best rewards when spending on groceries or travel.