The Key To Using Multiple Credit Cards
Monday, February 11th, 2008Most people find that it’s a good idea to stick with using just one credit card for every single purchase that they make. This makes it easier to remember how much money was spent. It also keeps billing simple and organized. And there are additional benefits to using one card such as racking up rewards more quickly, protecting yourself from identity theft and only having to keep track of one card when you go out.
Despite this, there are some good reasons for using multiple credit cards. The main one is that different cards offer different benefits. Your interest rate might be lowest on purchases with one card but may give you more cash back on certain purchases with a different card. Or you might like using one card at the beginning of the month and another at the end in order to vary up the way that bills come in.
Using multiple cards can be done successfully and can be useful to you. However, it requires that you follow some basic rules. Here are the keys that you need to use multiple cards without difficulty:
• Know why you’re doing it. You really need to stop and think about what benefit you get from using different cards. This will help you define when to use which card.
• Stick to two or three cards. You might use an American Express card most of the time, a Visa at places that don’t take American Express and a gas rewards card for purchasing fuel. You don’t need more than these three cards in almost any circumstance.
• Get organized. You need to be uber-organized with knowing which card to use when, when those bills are due and what rewards you’re getting from each of them. If you can’t keep this straight in your mind, do it on paper. If you can’t keep it organized on paper, go back to using one card. Organization protects you from fees as well as from identity theft.
• Exercise self-control. Just because you have multiple cards doesn’t mean you can afford to rack up a bunch of bills. Practice good buying habits and budget your money before using your cards.
Used correctly, multiple cards can benefit you. However, you need to make sure that you’re not just using a bunch of cards for the sake of using them. Know why you need more than one card and how to keep control of your spending when using them.
