Having
multiple credit cards in the initial state has an impact as it reduces the
credit utilization ratio, and that helps a person build a credit report that is
positive and allows a person to have access to higher credit reports.
In this blog,
we will discuss some of the steps to manage credit cards and how, through the
priority list formula, one can easily navigate and maintain their credit
profile.
How Many Types of Credit Cards Do You Need?
When you are
earning and on a journey to start a family, then from the bank, you can find
the offer of a credit card quite tempting. Even for those who are staying
single, a credit card gives a person an opportunity to invest, and through
that, one can choose how many credit cards they need to manage their daily
expenses.
For an issue
of a new credit card that will be suitable, then it’s advisable to visit a DSA partner who can guide you on what type of credit card will be best
suited for you.
1. A Card for High Reward
The first task
that a person needs to make is to take a credit card where one can have
multiple offers and in the range where one can use that to get points that can
be later redeemed.
A card that
solves this purpose provides a person with cashback and another essential item
that can help the customer to have a high reward system that they can use for
the next month’s shopping and grocery bills.
2. Store-Based Credit Card
Another type
of credit card a person needs is the card that a particular store provides. For
example, Starbucks has a separate card, and once a person starts using that
card, they tend to get some gifts and amazing offers that are exclusive to the
card operators.
If you visit a
place quite often or your entire grocery or home appliances come from that store,
then it’s the best call to keep that card as it can help you to get an extra
discount or access to festive offers before time.
In the online
space, Amazon provides its repeat customers with the option of Amazon Pay,
which works like a virtual credit card. Here, one can make all the purchases
using that payment option, and at the end of the month or a stated date, one
needs to complete the payment.
3. A Card for Emergency Purposes
A credit card
is also required for an emergency and there to make the payments, one can use
the credit limit. Especially it can be used for hospital expenses, and one can
use that then convert the bill into an EMI, which eases the financial burden of
the person.
One mistake
one must avoid is that while making some payments into EMI, one must make that
particular transaction as EMI rather than paying the entire credit card bill in
the form of EMI.
In doing that
one can save a lot on the interest as the payment of the credit card bill in
EMI incurs high interest rather than converting a particular transaction. To
get the right card, one can log into an app for DSA, which can suggest the
right card option for you.
How to Ensure that Your Finances Are in Place
Now, to ensure
that you manage all the credit card bills then, you need to get into a format
where you can manage the bills in an automated manner. In managing financial
wellness, it must be clear that getting credit cards unnecessarily will ruin
financial stability, and maxing out each of those can bring financial burdens
and perils.
·
First Look for the Right Cards
·
Track the Spending on Each Card
·
Make Full Payment for All the Credit Cards
·
Set the Automatic Payment System
·
Keep Spend Limits on Each Card
Following
these guidelines will help a person stay on top of their finances, and through
that, one can have a clear financial without any burden from credit card bills.
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