Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Credit Card Spending

    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

    • HDFC Bank Credit Card
      "Best card"
      0.5 5.0/5 "Blown Away!"
      The services were too good wit this card,this is complimentary card . I am using HDFC bank credit card . I use this card for multipurpose . The card and their services are very good. There is no hidden charges with this card . They need to increase the limit on the basis of usage and transactions.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 25, 2019
    • Bank Bazaar Credit Card
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      The experience i had with Bank Bazaar has been pretty good and i am using the services of them for the last few months. I came to know about the services of them through a mail which i had got and i had used their website which has been quite convenient in using. Their customer support has also been responsive and has been helpful as well.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 25, 2019
    • Kotak Credit Card
      "Good card"
      0.5 5.0/5 "Blown Away!"
      I am using KOTAK MAHINDRA BNAK card for the past one years and the services which they had provided so far was quite good. There was a good credit limit of 40000 with this card and there has been many benefits which came with this card like reward points and EMI convertion facilities and it has been an annual chargable card as well.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 25, 2019
    • ICICI Bank Credit Card
      "Good service"
      0.5 4.0/5 "Great!"
      I have been previously using ICICI bank for savings and salary account , i am not happy with their service they have not give me good service , like all time they use to charged me hidden charges without my knowledge, their mobile application is good.
      Was this review helpful? 0
      , mumbai
      Reviewed on May 25, 2019
    • Bank Bazaar Credit Card
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I came to know about Bank bazaar service through on line, this is my first time i have been using their service, their customer care service is good, they use to follow up with me time to time, their response was good, their website is good, i can get all financial products information over there.
      Was this review helpful? 0
      , mumbai
      Reviewed on May 25, 2019
    • Kotak Credit Card
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have taken KOTAK MAHINDRA bank credit card for more than a month through an online. On time I received a card there was no issue at a verification process. The credit limit is low which was offered in this bank. They give an offer for one free ticket in book my show.
      Was this review helpful? 0
      , jaipur
      Reviewed on May 25, 2019
    • ICICI Bank Credit Card
      "Good for regular usage"
      0.5 5.0/5 "Blown Away!"
      I am holding ICICI credit card around three years, I started using it for some transactions. The credit limit is good around Rs. 60,000 and they are sending the statement on time. I am okay with the billing cycle and due date, I get payment update on time.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2019
    • Bank Bazaar Credit Card
      "Its supportive"
      0.5 5.0/5 "Blown Away!"
      Bank Bazaar is informative and I get good support from their end for any banking queries. When I interacted for the credit card purpose, I got a proper response. Its my first experience I am happy about it, the site is user friendly to browse the options.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2019
    • Kotak Credit Card
      "Its Excellent"
      0.5 5.0/5 "Blown Away!"
      I would say Kotak Mahindra card is good to use and comparatively its better than others. I got lower limit it can be improved but the credit card processing time was lesser to avail the card. They are providing reward points as well on my spend.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2019
    • ICICI Bank Credit Card
      "Good Service"
      0.5 4.0/5 "Great!"
      I am using this ICICI Bank credit card for the past 6 months.Customer service is not satisfied according to me .Other than this everything is good .The credit limit was good ,have good cash back offers and reward points .There was no difficulties faced so far on submitting the documents .
      Was this review helpful? 0
      , coimbatore
      Reviewed on May 25, 2019
    • Kotak Credit Card
      "Medium"
      0.5 4.0/5 "Great!"
      I am using KOTAK MAHINDRA bank credit card for more than a month which was applied through an online. The verification process was smooth and good. I received a card at earlier. They have offered for a life time free credit card. The credit limit is sufficient to use.
      Was this review helpful? 0
      , chennai
      Reviewed on May 25, 2019
    • Kotak Credit Card
      "Good Service"
      0.5 4.0/5 "Great!"
      I am having Kotak Mahindra Bank credit card which i have got through Bank directly .This credit card is very useful to me so far .The limit of this card was good to me i am using this card for the past 1 year .I am comfortable on using this card so far.The service is good to me so far.
      Was this review helpful? 0
      , coimbatore
      Reviewed on May 25, 2019
    • HDFC Bank Credit Card
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have HDFC Bank credit card which was directly applied through Bank.This card i amusing for the past 2.5 years .The credit limit was good and sufficient to me .There are good cash back offers and reward points as well.I have not faced any difficulties so far on using this card .This card is good to use .
      Was this review helpful? 0
      , coimbatore
      Reviewed on May 25, 2019
    • Bank Bazaar Credit Card
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      This Bank bazaar website was know to me while checking credit score through online .This portal is really doing a vital role in all financial products so far.This is a user friendly one and easy to handle .This portal will give us the details regarding the financial product what we search .
      Was this review helpful? 0
      , coimbatore
      Reviewed on May 25, 2019
    • IndusInd Bank Credit Card
      "Good Service"
      0.5 4.0/5 "Great!"
      I have selected this Indusind Bank credit card since dont have annual fee so choosed and also free card ,The agent gave al information about the credit card process ,I have received the credit card on time and also submitted documents through the agent ,There are cashback offers and reward points but not chekced so far .The credit limt was sufficient .
      Was this review helpful? 0
      , coimbatore
      Reviewed on May 25, 2019
    • RBL Bank Credit Card
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using RBL credit card for long time, they have given me good credit limit they have given me was good and i have been apply for this card through on line and they have not been charging annual fee in this card, as it is life time free credit card like they have given me rewards points up to 2000 points they said if i spent up to that then my rewards points will get waived off.
      Was this review helpful? 0
      , jaipur
      Reviewed on May 25, 2019
    • SBI Cards Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been holding my SBI credit card for long time, they have charged me annual fee in this card , but waived off option is available in this card and i am happy with my credit limit they have given me sufficient limit and the best part in this card is that they provide good offers .
      Was this review helpful? 0
      , jaipur
      Reviewed on May 25, 2019
    • Axis Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been using Axis bank credit card, they have not charged any annual fee in this card, and the best part in this card was they provide good offers and discount in fuel and i am happy with my credit limit they have provided me and overall service is good.
      Was this review helpful? 0
      , jaipur
      Reviewed on May 25, 2019
    • IndusInd Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I took Indusind bank credit card, their credit limit which they have given to me was good, they use to give good offers in shoppings , on e-portal business they use to give good offers, their mobile application is user friendly, it is life time free credit card.
      Was this review helpful? 0
      , jaipur
      Reviewed on May 25, 2019
    • American Express Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been using Amex credit card from long time, they have not charged me annual fee as it is life time free credit card, i am very much happy with their service which they have given to me, their mobile application is user friendly so far i did not face any issue, even they use to give good offers.
      Was this review helpful? 0
      , jaipur
      Reviewed on May 25, 2019
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