There is a common misconception that with credit cards you spend more and get caught in the debt trap. Because of this thinking, many credit card holders avoid taking additional cards. However, those who spend and pay bills with credit cards in a disciplined manner, remain at the advantage if they have more than one card. Basically, a credit card is a credit facility that needs to be managed smartly.
There are 18-55 days interest-free between the credit card transaction and the last date for bill payment. During this time, no interest is charged on transactions (except for ATM withdrawals). The condition is that the entire bill should be paid by the last date. Multiple credit card holders can make the most of this facility by splitting larger expenses according to the interest-free period of different cards. Sahil Arora, Senior Director, Paisabazaar.com explains how you can take advantage of using credit cards properly.
Make transactions for reward points and other benefits
Most credit cards come with certain benefits like free air miles. Spend all your card features in such a way that you can get the most out of the rewards program and other benefits.
When rewards for one card run out, use another
People who have more than one credit card can do a transaction with another credit card after the reward points of one card have been exhausted so that they continue to earn reward points on every purchase.
Avail EMI options and other offers
Some credit cards offer no-cost EMI on select products and services. In such offers, only the purchase cost has to be paid through EMI. You can explore such offers on the cards.
Use up reward points before they expire
Those holding more than one credit card should not allow the reward points to expire. Some credit cards have the facility to use reward points for bill payments. Take advantage of this.
Set a reminder to pay the bill
A reminder can be set on mobile to avoid missing the last date of bill payment. You can also set up standing instructions in the savings account and take the help of the app.
No worries if a credit card is lost or stolen
It takes time to get a new card when a credit card is stolen or lost. In such a situation, those who have only one credit card will have to work with a debit card or cash. Extra cards avoid this hassle.
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