Fear of overspending and falling right into a debt entice could also be conserving you from making use of for a further bank card. However, having a number of bank cards might be useful when you comply with a disciplined strategy in direction of bank card spends and reimbursement.
Let us take a look at how effectively you’ll be able to handle and profit from a number of bank cards.
First, you could plan your bank card spends in keeping with interest-free intervals, i.e. the length between the date of a bank card transaction and the due date of repaying the invoice. No curiosity is levied on bank card transactions, barring ATM money withdrawals, through the interest-free interval so long as you repay your entire invoice quantity inside its due date.
“This interval can vary anyplace between 18 and 55 days, relying on the transaction date. If you’ve a number of bank cards, you’ll be able to profit from this interest-free interval by distributing your big-ticket bills throughout totally different playing cards, based mostly on the residual interest-free interval,” mentioned Sahil Arora, senior director, Paisabazaar.com.
Second, unfold your transactions based mostly on reward factors and different advantages. Credit card issuers design their reward level programmes, money backs and different advantages based mostly on track client segments.
If you spend a sizeable quantity throughout a number of classes resembling procuring, gasoline and journey, you’ll be able to accrue increased advantages by spreading it throughout a number of playing cards based mostly on their reward level construction and different advantages.
Third, you need to evaluate equated month-to-month instalment (EMI) choices and gives on varied bank cards. Credit card issuers have a tendency to supply no-cost EMIs on choose services.
“Merchants bear the curiosity prices of no-cost EMIs and the cardholders are required to repay the acquisition price in EMIs. However, the GST levied on the curiosity price part of the EMI needs to be borne by the cardholder. Some bank card issuers provide further reductions to cardholders upon selecting the no-cost EMI choice,” mentioned Arora.
Fourth, redeem amassed reward factors earlier than expiry. The amassed reward factors near their expiry dates ought to be used for buying vouchers, merchandise, and so forth., from the companions listed within the reward catalogues. “You may also use the amassed reward factors to repay your excellent bank card dues in case your card issuers enable you to take action,” mentioned Arora.
Fifth, you could hold observe of bank card due dates by setting reminders. Various apps and wallets providing bank card invoice reimbursement services additionally prolong invoice reimbursement reminders to their customers.
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