6 secrets of handling multiple credit cards


A credit card is issued by a financial institution that lets you borrow money from a pre-approved limit to pay your purchases or any other expenditure. It looks like a rectangular piece of plastic or a metal card. The issue of credit cards depends on the credit score and the history of the customer. 

People often get confused between a debit card and a credit card. The basic difference between the two is, when you swipe a debit card, the amount is deducted directly from the bank account. On the other hand, the amount is deducted from the pre-approved limit when you swipe a credit card. Maintaining a good credit score is important, and the higher the credit score, the higher the limit.

A credit card is also used to pay for essentials or make online transactions. After applying for a credit card and borrowing money, make sure you repay the borrowed amount within the stipulated period. But while all that is understandable, what most people fail to deal with is multiple credit cards. That is why we will share about the same in this article below. Keep reading for more.

6 Secrets Of Managing Multiple Credit Cards in UAE

The list of advantages of possessing a credit card is endless, and many people keep extra credit cards to increase their credit score or get more benefits. Mentioned below are some quick tips that shall help you handle multiple credit cards easily and efficiently.

  1. Restrict Carrying A Balance

When handling multiple credit cards, avoid carrying forwarding of balance from the billing cycle to the next. The reward cards have high-interest rates and can come back as a nightmare if you forget to pay bills on time. Any interest you pay can offset the value of rewards you have earned with your credit card. 

Repayments of credit bills on time is necessarily important to avoid falling into a debt trap. Carrying a balance on a credit card can put you in a position where your credit score might get damaged.

Credit card utilisation makes up 30 % of your FICO score, and experts suggest keeping the utilisation below 30% to avoid damaging your credit score. 

2. Skip Cards Which Have Annual Fees

Running an expenditure with a credit card with annual fees can make things difficult down the line. Payment of annual fees means that you will be paying more than you would have paid for your purchases if you used cash. The user is considered a wise credit card user if they opt for no charge on annual fee cards in the UAE.

Credit cards without annual fees are known as free for life credit cards. In case you find a credit card that is perfectly suitable for you but has an annual fee, you can ask your credit card company to waive it off for you. Some famous free-for-life credit cards in the UAE are ADIB Value Card and ADCB SimplyLife Cash Back Card.

3. Select The Right Card For Your Purchase

Maximizing the reward points is one of the most tedious tasks of having multiple credit cards. It is essential to pay attention to each credit card’s features. The features include fraud protection warranty for travel insurance and many.

More. You can enjoy these features when you make a major purchase with your credit card.

Starting from travelling to shopping, different credit cards suit the needs of different people.

In the UAE, different types of credit cards are available like air miles credit cards, cash back credit cards, airport lounge access credit cards, travel credit cards, cinema offers credit cards and balance transfer credit cards.

4. Keep A Record On Your Purchases

Having a record of where you are spending your credit money is important, and it shall help you pay off your credit balance. To avoid penalty charges and be able to pay off your short term loan, reduce expenditure, and keep track of your monthly statement. If you do these, it will help you ensure the correct amount of transactions and gain bonus rewards offered by your credit card company.

The best way to keep track of your money while using a credit card is by building a monthly budget separating the expenses, creating space for savings, including the credit card’s payment in the next month’s budget, and tracking credit card statements every month. Use online banking to make your repayments on time hassle-free. Payment through a mobile application is also a good way of repaying.

5. Consider The Effect On Your Credit Score

It would help if you overlooked the impact of your credit score on your credit life. Your credit score and credit history are the most important factors to check when the lender approves the loan, and having a low credit score may make you ineligible for the loans. 

A higher CIBIL score indicates good credit history and responsible repayment behaviour. A healthy credit score can get you instant loan approvals, low-interest rates, home loans, car loans and higher credit limits. 750 and above is considered as an ideal CIBIL score.

6. Repay Your Balances On Time 

Paying off balances each month is essential, but along with that, monthly payments before the due date is also important. An online bill payment system can be ideal for you if you are forgetful, and this can make your payment easier, and you will cross your deadline. By any chance, if you miss your payment, you can ask your credit card issuer to waive off the fee. 

The credit card company is often obliged since it is your first late payment or a new card. Repaying balances on time can help you avoid penalty charges, which often affect your credit score. 

Advantages Of Having A Credit Card

A credit card is an indispensable part of life. It is convenient and has got multiple pay-back options. Credit cards provide unmatched discounts and deals for the user. A user can fall into the debt trap cycle if they do not use the credit card wisely. 

If you are a new user of a credit card, mentioned below is the list of advantages associated with the advantages of the credit card. 

1. Easy Access To Credit

One of the main advantages of possessing a credit card is accessing a borrowed fund easily. They run on a deferred payment basis, which means you can use the card now and pay later. When a credit card is swiped, the money is deducted from the pre-approved limit, preventing denting of your bank balance.

2. Construction Of Line Of Credit   

A credit card can be very important for any future loans you expect. The financial institution issuer checks the usage of credit cards based on its creditworthiness and approves loans to potential users. The banks also keep the check on the credit history based on card repayments and use of credit cards. 

3. Facility Of EMI

People often think of buying a great product that might eat up their savings. In such cases, credit cards can be used to defer the payment. There is also an option of paying off in monthly installments. Paying for expensive products like television or refrigerator can be cheaper through EMI than partying through a personal loan.

4. Amazing Offers And Deals

The credit cards are jam-packed with amazing discounts, offers and deals. They come in cashback, reward collection through points and much more. These can be redeemed only once when you swipe within the valid period. You can also get free flight tickets, vacations on any large purchases by vendors through credit card payment. 

How Does A Credit Card Work?

A credit card is a short term loan. When you use a credit card, you tend to use the credit card company’s money. The repayment of the loan depends on the timings issued. The company sets a pre-approved limit for the borrower to spend, and this limit is set depending on your credit score, income and account history.

When you make payments against your balance, the credit card is freely available to you again. The concerned company sends a detailed statement of your activity, balance, minimum payment and due date every month. 

The Bottom Line 

Possession of multiple credit cards can be of ultimate benefit to the people in today’s world. Large purchases credit cards are best suited to meet up with instant expenditures. Instead of applying for a personal loan to buy expensive products, payment to credit cards can be used. The facility of EMI has taken the credit card users on a roll. Plus, it is way cheaper than any other system.

Try to pay off the credit balances on time to maintain a healthy credit score. To enjoy the maximum benefits of a credit card, make sure the card is suitable for you. The UAE banks have multiple types of credit cards to suit the different needs of the people.  Also, do not forget to take a look at the above mentioned content for more details. 


Please enter your comment!
Please enter your name here