If you have multiple credit cards, you can take advantage of some helpful strategies. Credit card use, known for convenience, has increased significantly, even in remote areas, with most transactions now being made with credit cards.
Use credit cards strategically to take advantage of the interest-free billing cycle. The period between the date of a transaction and the due date of payment is known as the interest-free period.
By understanding the billing cycle pattern and making payments after the bill is generated, you can settle the bill in about 50 days. You can extend this period if you have two credit cards with different billing cycles.
Additionally, credit cards offer various rewards, discounts, and cashback offers. Using credit cards with different reward schemes can maximize these benefits.
If you cannot pay the credit card bill on time, you can use the credit card balance transfer option.
This allows you to transfer the bill from one card to another, providing additional time to pay your dues. Keep in mind that some institutions might charge processing fees for balance transfers.
Moreover, having multiple credit cards can help you control your Credit Utilization Ratio (CUR), which can positively impact your credit score.
By dividing your spending among different cards, you can maintain a lower CUR, ultimately improving your credit score.