How To Manage Multiple Credit Cards

Information verified correct on September 27th, 2016

Using multiple credit cards from different banks and credit card issuers

Using credit cards these days is something that just about everyone can relate to. If you are travelling, it is a must. People choose to use credit cards for many different purposes and it is important to know how you want to use your card.

Credit cards are getting easier to acquire even for those with less than desirable credit. You can choose from many different banks and providers. While some may choose to stay at one bank to get their cards, it is important to know that looking at different banks for different credit cards may result in better deals.

HSBC Credit Card will provide you will some relief with an amazing 0% p.a balance transfer offer for the first 6 months plus a $0 annual fee for the life of the card. There is no better card to consolidate your credit card balances with. “, ‘Up to 55 days interest free on purchases’); ?>

If you are one of the many that has multiple credit cards, then you should know about the different ways of managing them. This article contains a few tricks you can use to help keep track of many credit cards at the same time.

Most people these days are carrying around multiple credit cards, and this can indeed create a problem. It can be difficult to manage too many cards at the same time, but here are some tricks to help you do it.

Handling Multiple Credit Cards:

If a person has three or four credit cards and a couple of store cards, all with outstanding balances, then bringing them all together under one umbrella is only sensible. The existing credit cards could have interest rates in the mid to high teens, and the store cards may well be a lot higher than that. It makes perfect sense to reduce those interest payments for as long as possible, perhaps even taking them down to zero percent.

This also makes it easier to manage the debt. No longer will there be multiple credit card statements arriving at different times, with different minimum payments due on different dates. It is easy when that is happening to overlook a payment and end up in default, and then be charged a fee. Receiving just one credit card statement at one rate of interest simplifies matters and ensures ease of debt repayment and better budgeting.

Multiple transfers of this sort are always easier to set in motion when the credit card application is actually being made. There will be special pages on the form designed for this purpose. Although you will not yet know if the full amount you request to be transferred will be allowed, you are at least getting in early so that you can take advantage of every day that’s on offer. A balance transfer offer for six months starts the day the account is opened, not the day the transfer is made.

When your credit limit is known, you can then see exactly how much of your debts you can transfer. You may be lucky – you may be able to cover them all. If not, you should transfer as much of the higher interest debts as possible. Bear in mind that the credit limit you are allotted is not the same as the amount you can transfer. Normally, credit card companies only allow you to transfer 95% of your credit limit to allow some leeway to make the odd purchase and still remain within bounds. This is in your interest; a charge will be levied if you exceed your credit limit, and it may even state in the fine print that your 0% offer will be invalidated by such actions.

Change your due dates

If you have multiple credit cards that have different due dates during the month then it can be very hard to get them all paid on time. You can quite often change the due date on your credit card by simply calling customer service for each account and asking them if they will allow a change. Have one or two different due dates that you handle instead of 5 to 10, and you will be less confused and more able to make your payments on time.

Consolidate your credit cards

Transferring more than one credit card debt to a balance transfer credit card is a perfectly acceptable way of using it. This is called consolidating your debts and it is one of the main reasons that people take such a credit card.

If you possibly can, cut down on the number of credit cards you own and consolidate some of them onto one card. You can get a balance transfer card that allows you to transfer the balance from other cards over to one with a low interest rate. You can also save a lot of money by using a balance transfer card since you will be paying a lot less interest than you would be with a regular card.

Use automated payments

You can pay your balances automatically every month using your checking account. You can set this up according to your due dates and have money sent directly from your checking account over to the credit card company. If you do this, you must remember to have enough money available in your checking account to pay your balance. You don’t want to have to pay any overdraft fees at your bank.

Use Internet banking

You can use online banking to pay the statements on multiple credit cards, which will help you keep track of things much easier. You won’t have to worry about mailing any more, and it just takes a few minutes to make a payment.

Handling multiple credit cards can be a challenging situation, so make use of the wonderful tips offered above to avoid late payments and reduce your financial stress

If you are responsible when it comes to your finances and spending, then owning multiple credit cards might be a good idea for you. For example, you can have a higher number of credit cards with lower credit limits, rather than a single one with a high limit, which will help to control your impulse purchases. Or you can have two cards, one with a lower limit for daily needs and one with a higher limit for emergencies.

However, no matter how many credit cards you have, you need to learn to manage credit card payments to ensure that you don’t have any problems down the line. One common problem among people with multiple credit cards is that they end up making late payments on some of their cards because they simply forget when their payment is due.

One way to avoid this problem is to streamline all your payments so that everything is made on the same day. Simply pick a date that will ensure your repayments get in on time for all your credit cards and either make the payments manually, using an internet banking system, or set up a direct debit from your cheque or savings account. This way, you won’t have to worry about your payments getting in on time and having your credit report tarnished.

Having multiple credit cards isn’t always the solution. However, if you already do have a number of credit cards, you need to take steps to ensure that you manage credit card payments properly so that you don’t run the risk of destroying your credit report simply because you forgot which due date belongs to which credit card.

Multiple Reasons For Different Cards

Customers may want to have different credit cards for a variety of reasons.

  • Rewards Cards - If you travel frequently or if you like to shop using rewards points then having a rewards card is very useful to you. You can redeem your points towards items that are useful or beneficial for you.
  • Low Interest Card – If you want a card just for the purpose of spending and you don’t want to pay a lot of interest then this is the card for you.
  • Balance Transfer Card – If you have a credit card that has a high interest balance on it and you would like to save some money on interest then transferring your balance over to a balance transfer card is a smart idea.
  • 0% Introductory Card - You can save a lot of money with this type of card if you pay off the balance before the introductory period ends.

Shop Around

If you have a card with a bank and would like to get different credit cards within that bank, you may be at a disadvantage. For example, if you are looking for an introductory offer card or a 0% interest card either one of those choices may not be available to you at a bank in which you are already an existing customer.

These offers are designed to bring in new customers and since you are already a customer at this particular bank they do not have a vested interest in providing a multiple of credit card choices to you.

This is why it is very important that you shop around to different banks to search for desirable credit card offers. It is by doing this that you will be able to find the most advantageous cards for your situation.

Are Multiple Credit Cards Right For Me?

Owning multiple credit cards can be a great way to keep track of your spending and manage your personal finances. However, having more credit cards isn’t the ideal solution if you already have a spending problem. This is because you are more liable to max out all your credit cards, rather than using them for their intended purpose. Thus, if you are unable to control your spending habits, it is unlikely you will be able to manage credit card payments either, which will only lead to serious debt problems, and, in the worst case scenario, credit rating problems.

However, if you already have debt problems, the only time you should consider multiple credit cards is if you are applying for a balance transfer credit card to get your existing debt under control. You can use a balance transfer credit card to reduce or eliminate existing balances on other credit cards at a much lower rate than what you are currently paying.

You need to remember, though, that if you improperly manage credit card balance transfers you could end up in a worse situation than before. This is why you should refrain from using your card for anything else other than paying off your outstanding balances. Once you have paid off your balance transfers in full, then you can consider using your card for other purposes.

How Many Cards?

When you start shopping for credit cards, you can quickly find yourself tempted by all the attractive offers you come across. You start thinking that you can get plenty of air miles with this card, rewards to rent lodging and buy gas with another card, and you may see a third with a zero transfer balance rate for a certain period of time. When you are enticed by all sorts of credit cards, it can make you want to apply for all of them. But how many credit cards should you have? What number of credit cards is ideal? That’s not a very easy question to answer.

Gauge Your Needs

These days there are tons of different types of credit cards and each ones offer their own features and benefits. However, you can’t just start snatching up credit cards just because they offer low interest, minimal fees, airline miles and other perks that have you seeing visions of saving all kinds of money on things you don’t need. By applying for a good number of credit cards, you are only going to end up putting yourself in debt. So when it comes to how many credit cards you should have, try to be a little more choosy.

When it comes to how many credit cards to apply for, don’t focus so much on the number of credit cards as what those cards can do for you. To do that, pay attention to your shopping habits and what you tend to use credit cards on while you go about your daily life. If you don’t have any credit cards as of yet, consider what you think you’ll use your cards on. Then, really start looking at the various cards and be honest as to whether or not you really need the cards in question. If you find a card that has what you need, apply for it. If you are enticed by a promotional offer for a card that you don’t really need, pass it up. But what number of credit cards is ideal?

Optimum Number of Credit Cards

There is no exact digit when it comes to the number of cards a person should have. This is really up to you and what you need. If you’re a person who can handle twenty cards then get twenty cards. Most people will only be able to manage one or two and maybe three if they are really responsible. The fact is, you never want to get into a situation where you’re used to using your credit cards all the time. Only get the number of credit cards you think you can handle and then don’t focus on how many you have, but rather what those cards can do for you and your finances.

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Credit Cards Comparison

Rates last updated September 27th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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