How to manage multiple credit cards without hurting your credit score
Managing multiple credit cards can appear to be challenging, still with the correct approach and proper planning, you can keep your credit profile safe. Such practices will never harm your credit score. On the contrary, having several credit cards can be beneficial if handled responsibly.
Sumit Sharma, Founder of Radian Finserv, explains, “Having multiple credit cards doesn’t necessarily harm your credit score—in fact, if managed responsibly, it can work in your favour. The key is to maintain a low credit utilisation ratio, ensure timely payments on all cards, and avoid applying for too many new cards at once.”
One of the most crucial factors to consider when managing multiple credit cards is your credit utilisation ratio. This is simply the amount of credit used compared to your total available credit. Keeping this ratio in check and below 30% showcases to lending institutions that you are not overly reliant on credit. Such a habit hence, positively impacts credit scores.
On similar lines, another efficient strategy is to stagger payment due dates. This can make it easier to keep track of when every payment is due, thus reducing the chance of missed payments. Making minimum payments automatic is consistently reviewing your credit card statements for any errors or discrepancies, further propels good financial planning and assists in maintaining a clean credit record.
It’s crucial to avoid the temptation of opening multiple new credit cards simultaneously, as frequent applications can lower your credit score. Instead, focus on building a strong, long-term credit profile by using your cards wisely and paying off balances promptly.
Multiple credit cards, when managed well, provide much-needed flexibility, access to varied rewards, and opportunities to boost your credit health in the long run. Hence, following these simple ideas and practical tips will assist in confidently managing credit cards without detrimental effects on your credit profile and credit score.
Hence, by integrating these strategies into your financial routine, you can enjoy the advantages of multiple credit cards while safeguarding and potentially improving your credit score.
For all personal finance updates, visit here.
Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards, and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
