New Delhi: Credit card growth has seen a boom among all classes of people. The various offers and rewards available – cash backs, travel benefits and the ability to make higher end purchases on credit cards attract more customers to get at least two to three credit cards.

Acquiring and using a credit card is the easiest part. However, managing them can be quite a task. It does not matter if you have one or five cards, if you do not manage them efficiently, then you might find yourself in a financial soup. The key is to strategise our credits in relation to our monthly cash-flow to not end up in a pile of debt.

But a lot of people still ask how many credit cards is too many? Is there a risk to get more than one credit card? Does it help with the credit score? Or will there be any hindrance in acquiring a loan from the bank if we own too many credit cards?

To answer all of these, author Holly Johnson who owns 26 cards has come out with a few tips and tricks.

She says that the number of cards requires some organization, self-discipline, and planning. To avoid the pitfalls of credit, she says, it is important to track your credit cards in a spreadsheet, and using common sense when it comes to signup bonuses and annual fees.

Tips of How to Manage credit card:

  • Maintain a budget:

While getting a credit card is easy, if you are no careful you might also overspend. Hence, it is advisable that you maintain a monthly budget and spending plan.

Also keep a 'spending cap' for yourself for every month. That helps a lot.

  • Don't get into debt

This is the most prone to if you use too much of credit card. Try to pay the debt on time as credit card interest can lead you to debt.

If you do not make timely payments, the interest rate will keep accruing and your repayment will turn into a treacherous cycle running over years. Besides, your credit score will take a major hit if you default on monthly payments.

For instance, if you fail to pay an outstanding amount before the due date, you will have to pay higher interest along with a late fee.

If you want to maintain a good credit score, you should keep a track of your monthly payments and keep aside a portion of your income towards clearing dues.

  • Track your credit cards:

Always track your credit card and it is advisable that you keep a simple spreadsheet. You must be aware which card you signed up for along with oher details.

If you have multiple cards, track them formally.

Relying on one card is not a smart step. Two to three cards can help you learn how to manage your finances smartly and increases your chance to manage bigger loans in the future.

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