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POSTED BY ON October 26, 2014 2:35 pm COMMENTS (5)
Hello..
I have 6 credit cards. Its a mess to be frank. I have been in their credit trap for years now, paying minimum due and lots of interest and all. Lately i was able to completely pay off 4 cards.
The cards:
Citi 1 (ioc card, free of charge) – paying minimum due
Citi 2 (shoppers stop card, free of charge) – paying minimum due
SBI (rs 750 annual charge) – paid complete amount
HDFC (free of charge) – paid complete amount
Kotak (pvr card, free of charge) – paid complete amount
Standard Chartered (free of charge) – paid complete amount
Now i need to know what should i do with the cards. Should i cancel the cards i paid off? Should i keep the cards or maybe cancel the sbi one as it has annual charge?
Any other suggestion.
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after citi 1 and 2 is cleared, select one of these three cards and close the other two.
better use debit card. You might fall into the trap again if you are not careful and have not changed your spending habits. Have only one Credit Card (apart from citi 1 and 2), leave it at home. Use it for bill payments like insurance premium, telephone where physical card is not required so that the card remains active.
First of all pay off all the balance dues on any of these cards
Then look at the free of charge cards with respect to the credit limit, redemption benefits, cash back etc. The best TWO which gives maximum benefit to you may retain
Also, in the retained card, you may look at the due dates of cards. I would suggest to have a statement date difference of 15 days between two cards. Lets say card 1 has statement date of 1st of every month and other has 15th of every month would be good. You can use card 1 for 1st 15 days of the month and Card 2 for next 15 days. This way you control spending on your cards and also get maximum free credit period. Plus you make payment to each card at different time intervals so less hit on pocket at a single point of time.
Ashish
Better close ones with annual charges and the ones which u r using for very less purpose. Cut down to 1-2
See your spending pattern over the last 3 months- 2years and then see which 2 cards will be most beneficial( in terms of cash back, points to be redeemed) and close the rest of the 4.