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How to juggle multiple credit cards?

Published on December 2nd, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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The Australian credit card industry has a healthy competition; as a result, there are different types of credit card products available ranging from low interest cards to rewards cards. With all the different benefits and loyalty programmes available, many credit card holders have multiple credit cards.

The benefits of credit cards can also easily be out shadowed by debt. With Australia’s debt standing at $52 billion, $16.7 million of that is credit card debt. It is therefore vital that credit cards are used wisely, and that the debt is paid off monthly.

Pick the right cards for your needs

With a selection of credit cards available, each offering something different you need to filter through and compare them to gauge which cards will offer you the best benefits. Just remember, the best benefit is when a card actually has a purpose. For instance, low rate credit cards, although not offering rewards normally has a low interest rate. Whereas rewards cards such as a frequent flyer credit card will offer points on monies spent, but these type of cards normally have a high interest rate. Therefore, it is best to compare different credit cards to see which card will offer the benefits you need and will use.

Use the cards responsibly

Regardless if you have one or multiple credit cards, the rule will remain the same – you need to act sensibly. Regrettably, those that get into financial trouble are on the rise. For instance, ABC News in February of this year, mentioned that the National Debt Helpline was buckling under the pressure as it received 3000 more calls this January as compare to January last year. Therefore, follow these tips to make sure you can manage your debt better.

Pay on time

With multiple credit cards comes multiple bills, which you need to pay before you have to pay interest charges or a late payment penalty. To help you organise your payments you can set a due date for each card, best to line it up with your pay cycle. Otherwise, set up an automatic payment by paying a certain amount monthly.

Watch your credit score

Multiple cards that are handled correctly can increase your credit score. Nevertheless, if the balance of the cards have high levels of debt, your credit score can drop. Therefore, check your credit score. Then measure it against the average of 760 out of 1200 that is seen as ‘very good’ and which is 73 points from excellent status.

Review the costs of your cards regularly

With 1 in 4 cards attracting an interest of less than 13%, and only 1 in 20 cards with an interest rate of below 10%, it would be wise to regularly review the costs of your cards. Some card issuers also offer bonus points when you switch which may be something to consider if accumulating reward points is the objective.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

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