How to own multiple credit cards and still save money
The financial world is one of the most unpredictable and volatile of all and in attempt to keep up, what else is there to do than try to save a penny or two for a rainy day? However, in the quest for financial security and independence, most of us find it necessary to own more than one credit card – which in some instances lays ground for debt. A credit card can be viewed as an emergency tool or when taken a notch higher, it is something that gives you more spending power – either way, we all need to learn how to control our urges and save a little, so here are a few tricks of how you can save money if you own multiple credit cards.
Do I really need more than need one credit card?
This should be the first thing you ask yourself before heading out the door to apply for another card and if you feel it truly necessary to have another one, read on to find out how you can save some money.
Learn how to keep track of ALL your cards
Owning multiple credit cards is a risk and challenge – a challenge in the sense that you may pay the wrong amount for one of your cards. Worse yet, you might accidentally miss a payment and late fees are costly – so save money and sign up for payment reminders and use credit card comparison sites to watch your money grow.
High interest rate or low interest rate first?
Credit cards with higher interest rate
Because you are now in possession of two different cards, it must be apparent that there is one card with a slightly higher interest rate than the rest and what most people ask themselves is where to start with the payments.
While it is advisable to start paying off the card bearing the highest interest rate, some economists state that all minimum fees must be met for ALL cards. It is not a case of paying for one card and the rest later.
By paying the card with the highest interest first, card holders somehow ensure that if they cannot meet the minimum fee for the rest of the cards, the interest rate becomes somewhat bearable – saving you a few hundred dollars.
Credit cards with lower interest rate
If you want to have peace of mind, then you might want to consider paying beyond the minimum annual/ monthly fee. Not only will you get bonus points but you will have a chance to have one month where paying interest rates will be the last thing on your mind
Know what each card is for
All in all, with so many cards, it might be inconvenient to start using just any card for any situation so label each card.
Different cards offer different rewards, so you might want to optimize each card for the different benefits it might offer. Using credit card comparison sites helps to see which card offer what. For instance, one card might be for travel rewards while the other is for purchase protection.
This is your best deal to saving money for each occasion.