Financial Concepts of Credit Cards
Before delving into management techniques, it’s crucial to understand the key financial concepts associated with credit cards:
- Credit Utilization Ratio: This metric, expressed as a percentage, measures the amount of credit used compared to the available limit. A higher utilization (ideally below 30%) positively impacts your credit score.
- Annual Percentage Rate (APR): This represents the yearly interest charged on your outstanding balance. Opting for cards with lower APR minimizes interest accrual.
- Rewards Programs: Different cards offer diverse rewards like cashback, travel points, or extended warranties. Choose cards that align with your spending habits.
Read our article on Top 10 Best Credit Cards in India 2024, categorized based on your spending habits and needs.
How to Manage Multiple Credit Cards?
In today’s consumer-driven world, credit cards have become an integral part of personal finance. While they offer convenience and potential rewards, managing multiple cards effectively can be a challenge. This blog dives into the world of multi-card management, equipping you with the knowledge and strategies to reap the benefits and avoid the pitfalls.