Use a Different Credit Card For Different Types of Balances

• 1). Use one credit card solely for new purchases. Use a second credit card for balance transfers. Use a third credit card for cash advances. Try to determine which credit card is best to use for each type of balance based on the credit cards' interest rates for each type of balance.
  
  
• 2). Pay the minimum amount due on the lowest interest rate credit card. This is typically the card with balance transfers. Pay the minimum amount on the credit card with the second lowest interest rate. Make the largest payment possible on the credit card with the highest interest rate. This process allows you to take charge and ensure that the largest possible portion of your monthly credit card payment is applied to the balance with the highest interest rate.
  
  
• 3). If possible, transfer balances from the credit card with the highest interest rate to the credit card with the lowest interest rate.