Multiple Credit Cards: The outbreak of COVID-19 has put brakes on the world economy with its severity. However, many people holding credit cards are still facing problems in its management. The Reserve Bank of India (RBI) also issued a notice in March 2020 regarding providing a moratorium period to credit cardholders. But many people were still not able to use it. Not only has the coronavirus outbreak slowed the online expenditure, but it also has impacted the maintenance of credit cards significantly. It has become difficult for people who own multiple credit cards.
However, there are still ways available to manage multiple credit cards during this coronavirus outbreak. Here are some that tips will help you manage credit cards efficiently while avoiding a financial crisis:
Use Only One Card at a Time
Firstly, you should use only one credit card to minimize usage. You can transfer the balance from your other credit cards to the one you want to use. It will limit your monthly usage and help you manage one at a time than multiple credit cards. If possible, you should close other credit cards to avoid extra charges, penalties, or any additional fee.
Pay Minimum Due Amount When Necessary
Many credit cardholders pay the minimum due amount than the entire outstanding balance to manage their finances. Typically, you should pay in full to avoid any extra charges. Since during these times of crisis, it may not be possible for everyone to pay in full, you must make sure to pay the minimum due amount at least. It will help lessen the burden for future payments. Whether you have many or just one credit card, you can use this Credit Card Payoff Calculator to figure out how long it’ll take to pay off your debt and how much interest you need to pay.
Use Reward Points
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Most credit cards earn reward points when you make specific purchases. You can utilize the collected reward points to reduce the spending of credit balance. Such points lower expenses and the burden on monthly bills. Doing this will help you better manage the expenses in today’s scenario.
Make Transactions in the form of EMI
Credit cards offer the facility of making purchases in the form of instalments (EMI). Instead of paying for a high-priced item in full, you will only pay its monthly instalments, which will further reduce monthly credit bills. It also lets you optimize your credit card expenses smartly.
Do Not Withdraw Cash from ATM But Use Online Services
Making a cash withdrawal using a credit card comes with certain extra charges. You can save yourself from such overhead costs by not withdrawing money from ATM using a credit card. On the other hand, online transactions are easy to make and do not come with overhead costs. You should use this feature instead of withdrawing cash using the credit card for making purchases. Not only will it help you keep a track of expenses but also gives reward points to use exclusive services.
Set Transaction Limit
Setting up a transaction limit will only help you not utilize the entire credit limit, which eventually helps reduce monthly bills. It is also helpful in maintaining a good credit score. Setting a transaction limit for your credit cards also helps you stay away from unnecessary expenses.
Watch Monthly Expenses
Regular use of a credit card adds to the monthly bill, which can create a financial burden, especially during these times of the Coronavirus outbreak. Additionally, it can also disturb your monthly budget as a significant part of your income will go in paying credit card bills. So, keep an eye on your monthly expenses regularly to better manage credit card bills. Doing this will help you cut extra expenses and improve your credit score.
The outbreak of COVID-19 has jumbled everyone’s expenses, especially the ones surviving only on their savings. Getting a credit card during such times can help you manage finances better. Using credit cards for various purchases is beneficial in several ways, like various discounts and complimentary offers. If you want to apply for a credit card for better financial management, consider taking it from reputable banks like Axis Bank. They offer various exclusive benefits and discounts on multiple spending. Make sure not to burden yourself up with significant debt during these tough times and manage your spending wisely.