Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
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  • The little piece of plastic that is a credit card has slowly changed the way people spend and transact business. With revolving credit and deferred payments, as well as a host of other benefits, credit cards have become the dominant tool for both businesses as well as individuals.

    However, there is an insidious side to the rosy picture that a credit card paints, with the key one being overspending.

     

    Ways to Effectively Manage Credit Card Spending

    Credit cards can be a way to better manage one’s spending or they can mark the beginning of a spiral into debt and stress. Managing one’s spending on a credit card is the key to ensure that you reap the benefits that credit cards offer without falling prey to its disadvantages.

     

    Scrutinise Your Monthly Statements

    While all of us receive a monthly credit card statement, very few of us give it more than just a cursory glance. Reading through your monthly credit card statement is an important step in your battle against credit defaulting, as it could leave you vulnerable to fraudulent charges. While the cardholder is not liable to pay charges for fraudulent transactions made on his/her card, you as the cardholder would need to bring these transactions to the notice of your bank or else you’ll end up paying for purchases you haven’t made.

    Setting up an autopay or standing order for your credit card bill is also a bad idea, as you are unaware of the amount that you’re spending or what you’re spending on.

     

    Track Spending

    A credit card monthly statement provides a summary of all purchases made on the card, which can be used to track your spending, enabling you to identify and take inventory of where your money was spent. This makes the most difficult part of budgeting, which is tracking your spending pattern, simple, since it requires you to merely look through your card statement. Since the most important way to rein in your credit card spends is by identifying necessary and frivolous purchases made on your card, this will enable you to pinpoint the purchases that were impulse buys, helping you avoid such purchases in future.

     

    Use the Interest-Free Period Wisely

    Most credit cards come with an interest-free period, which ranges between 45-60 days. Purchases made during this period will not attract interest if the entire amount is paid off by the due date. Depending on the type of card you opt for, the interest-free period could be up to 60 days or it could be 45 days. By paying off all that you owe by the due date, instead of only paying the minimum due, you will avoid paying interest on the balance amount. With interest rates on credit card balances rising, this is the easiest way to stave off the credit card debt and ensure you’re using your card’s interest-free period to the fullest.

    Stagger Large Purchases

    If you plan on making a large purchase, for example, a refrigerator, putting the entire amount on your credit card might seem like a good idea since you will be able to defer the payment for a while. While this is a good idea, staggering your purchase so as to put in the next billing cycle is an even better idea, since this will give you more time to pay it off.

    For example, if your billing cycle is from the 10th of December to the 9th of January, with the bill due by the 20th of January, try to make your purchase after the 10th of January. In this way, the amount will be added to your bill that is due by the 20th of February, giving you ample time to marshal the cash needed to pay off the amount.

    This is especially important if you wish to avoid paying interest on your outstanding due.

     

    Make Small Payments Frequently

    Afraid to see a large amount of money go out of your account towards paying your credit card bill each time the payment due date rolls around? Instead of making one lump sum pay-out towards your bill close to your due date, try making smaller payments throughout the billing cycle. For example, if you make purchases worth Rs.25,000 on your credit card and the amount is due by the 20th of January, start by making small payments of, perhaps, Rs.5,000 each throughout the billing cycle (i.e., from 10th December to 20th January). This will reduce the amount you owe at the time the bill is due and you will also be aware of the amount you’re spending on your card.

     

    Sign Up For SMS Alerts

    Most of us receive SMS alerts when we swipe our cards at merchant outlets. These SMS alerts can be very useful as they can be used to track your credit card spends on the go, wherever you are. Paying attention to your available credit is a good way to monitor your spending and curb the spendthrift impulse.

     

    Stick to Your Spending Budget

    Always delineate a budget for purchases and stick to them. If you set a budget of Rs.6,000 for a particular purchase but your credit card allows you to spend up to Rs.15,000, do not confuse the two. Your budget for the purchase is Rs.6,000 only, since that is all you can afford to repay. Spending more would result in you having to shoulder the burden of going over budget when your bill is due, which can throw even the best-planned of budgets for a toss. Your credit limit is the total amount of money you have access to, but it does not reflect your actual buying capacity. Keep to your budget so you’re scrambling for ways to repay your bill, so you can avoid paying hefty interest charges that are associated with revolving credit.

     

    Use Your Rewards Wisely

    Almost all credit cards are tied to a rewards program, which will award points for purchases of a certain value. Some cards also offer discounts on particular segments, such as double the points on grocery shopping or a cash back on air tickets. Use these offers and promotions when making your purchases as a way to save on your final bill.

    With the help of the points mentioned above, you should be able to manage your credit card spending without going overboard, while still maintaining a healthy credit balance.

      

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    Credit Card Spending Reviews

    • Axis Bank Credit Card
      "Service is not up to the mark"
      0.5 1.0/5 "Really Bad"
      I am holding credit card from Axis Bank. I received the card on time. Credit limit is very less. I am not satisfied with their customer service. I lost my credit card. I informed them many times about it but they have not issued a credit card yet. When I call their customer care they ask me to go to branch and when I go to their branch they ask me to call customer care.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Jul 16, 2019
    • IndusInd Bank
      Bank Bazaar Credit Card
      "User friendly"
      0.5 4.0/5 "Great!"
      While surfing a credit score in a website I came to know about Bank Bazaar for the first time then I preferred to apply for a credit card and the process was good. Customer service is a nominal and okay. I use to check credit score through a website.
      Was this review helpful? 0
      , thane
      Reviewed on Jul 16, 2019
    • IndusInd Bank Credit Card
      "Good "
      0.5 4.0/5 "Great!"
      I am using INDUSIND bank credit card for more than a month which was applied through an online. On time I received a card from bank. The credit limit is okay which was given from bank. Not yet use the card. The customer service is good and responsiveness.
      Was this review helpful? 0
      , thane
      Reviewed on Jul 16, 2019
    • Bank Bazaar Credit Card
      "Average"
      0.5 4.0/5 "Great!"
      I have come to know about Bankbazaar from the internet. Their customer service is good and very helpful throughout the process. I have been using Bankbazaar for the last 4 months. I check free credit score and mobile application is user friendly.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Jul 16, 2019
    • Citibank Credit Card
      "Average"
      0.5 3.0/5 "Satisfactory"
      I am using my new INDIANOIL CITI PLATINUM CARD. I was delivered on time. Citi bank has given very less credit limit. I am expecting 1 lakh and above. It is a lifetime free card. I am having a hard time to pay my bills and it takes 2 days to reflect my payment.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Jul 16, 2019
    • HDFC Bank Credit Card
      "Good service"
      0.5 4.0/5 "Great!"
      I am holding an HDFC credit card. I have been using this credit card almost 10 years. I had received the card on time and credit limit is nominal. Sometimes I am getting some benefits like cashback offer and reward points. HDFC bank customer service is great.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 16, 2019
    • Axis Bank Credit Card
      "Average"
      0.5 2.0/5 "Expected more"
      I am holding a credit card from Axis Bank. I received the card on time. It is a lifetime free card. I have been using this credit card for the last 2 years. Axis bank Netbanking and mobile banking are user friendly. They have given me enough credit limit.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 16, 2019
    • IndusInd Bank Credit Card
      "Need to imrprove customer service"
      0.5 4.0/5 "Great!"
      I am using INDUSIND bank credit card for more than 3 months which was applied directly to bank. On time I received a card from bank. It is a life time free credit card.The credit limit is nominal . I use this card for all purposes. The customer service is no proper response.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 16, 2019
    • Bank Bazaar Credit Card
      "Hassle free"
      0.5 4.0/5 "Great!"
      I have used the services of Bankbazaar earlier as well. The customer support is good and they are quick to respond. The process is also satisfactory as it was easy to use the portal and place a request. There were follow up calls as well. In all no hassles.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 16, 2019
    • Bank Bazaar Credit Card
      "Good"
      0.5 3.0/5 "Satisfactory"
      I have come to know about Bankbazaar from a promotional message. I have been using their service more than 5 years. I visit this website to check financial products and credit score. Their customer service is good. Website and mobile application is quite user friendly.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 16, 2019
    • IndusInd Bank Credit Card
      "Unhappy with the process"
      0.5 3.0/5 "Satisfactory"
      I had applied for a credit card with Indusind Bank. The process has not been satisfactory. The credit card was sent to my old address and I did not even receive a call as well. Since I was no available at that address it returned to the bank and after which I got no card from them.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 16, 2019
    • HDFC Bank Credit Card
      "Good"
      0.5 4.0/5 "Great!"
      I am holding HDFC bank titanium credit card for more than 9 months which was applied directly to bank. On time I received a card from bank. It is an annual fee chargeable card.The credit limit is nominal and enhanced it. I use this card for all purposes but I get less reward point.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 16, 2019
    • IndusInd Bank Credit Card
      "Average"
      0.5 3.0/5 "Satisfactory"
      I have received my Indusind Bank PLATINUM AURA EDGE MASTER CARD. I am not able to pay my credit card bill through netbanking. The process seems very difficult to me.It is a lifetime free card and credit limit is nominal. They deliver the card on time.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 16, 2019
    • RBL Bank Credit Card
      "Need to decrease charges"
      0.5 2.0/5 "Expected more"
      I am holding RATNAKAR bank credit card for less than 2 years. It is an annual fee chargeable. The limit is okay now they have increased to 7 thousands only. I use this card electricity, ticket booking, restaurants, to buy electronic items based on the usage I get more points. They are taking some hidden charges without any intimation.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 16, 2019
    • SBI Cards Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been holding SBI credit card from long time, their service is good, they have charged me annual fee but waived off option is available, i am happy with the credit limit they have given me good limit as per my requirement, even the interest rate they have charged me is less comparing to market price.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 16, 2019
    • YES Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using YES bank credit card for long time my experience till now with this bank was good, they provide me good offers in all products, and they have not charged me annual fee in this card, it is life time free credit card, and i am happy with the credit limit which they have given me in this card.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 16, 2019
    • Standard Chartered Bank Credit Card
      "Not satisfied"
      0.5 1.0/5 "Really Bad"
      I have been holding standard chartered bank from long time, but i am not satisfied with their service , their service is not up to the mark, they have charged me annual fee but no waived off option is available in this card, i hold this account two years before, but they have not increase my credit limit, their customer care service is not up to the mark.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 16, 2019
    • ICICI Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been using ICICI bank credit card for a while, and they have not charged any annual fee in this card , it is life time free card and i am okay with my credit limit which they have given me in this card and like they charge annual fee but most of time it use to get waived off so i considered as no annual fee they charge and they provide good offers and discount in this card.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 16, 2019
    • Bank Bazaar Credit Card
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I came to know about Bank bazaar through Online only ,This portal was well known to all ,I have tried checking credit score it is very useful ,This portal is very useful to search all the required information related to all financial products . I am satisfied with the service .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 16, 2019
    • HDFC Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using HDFC credit card for long time, they have not charged me annual fee in this card, it is life time free credit card and i am happy with the credit limit they have given me in this card, and there is not much offers they have given in maximum products, they mostly given offers on miles that more important for me , overall service is good.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 16, 2019
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