Tips on Managing Credit Cards


So you are holding many credit cards in your wallet or purse and you are not sure if that is the right thing to do. You know that you are collecting points and rewards for all the expenditure you are making each month because you are using the UOB Women’s card and paying your Allianze insurance policy through the Alliance Bank Credit cards which means that you holding cards from more than 1 bank.

This will mean that you are actually juggling the cards each month having to pay back the amount you used. The ideal situation is to pay back the entire outstanding amount to the respective banks but there are times when you can only managed the minimum payment. So is there a way to manage all these cards so that you don’t go through these headaches every 30 days?

Take note, using a credit card is easy, managing it is the challenge. Everyone will tell you that the best and most ideal way to do this to pay off all outstanding amount and not the minimum.

But if that is not possible, then at least pay back as much as you can. Credit card is not ‘free money’. You MUST pay back every sen you spend through the card.

The rule of thumb is to have as few cards as possible. Don’t apply for cards for 1 sole reason especially if they are co-branded cards. Affin Bank offers BhP co-branded cards while Public Bank offer Esso cards and that does not mean you need the cards from both the banks.

Always consolidate all your purchases with 1 if not 2 cards at most. This will allow you to only have to pay one party and not at numerous places.

Never fall into the spending trap because it is so easy. If you are going to engage into a zero-percent interest scheme, then you must ensure that you are honouring the contract and pay the installment as agreed. The minute you default on any of the payment, the outstanding will be subjected to the original interest imposed on all credit cards.

If you really have to use multiple cards, then you must be able to ensure that you have the time to juggle the payments. When applying for the cards, do so at the beginning of the month so that all your due dates are about the same week.