Online credit cards are a great way to control monthly spending. Since online credit cards categorize purchases, you can easily track your spends. They come with rewards which help you save on purchases.  You should use your credit card to its full potential as it can be a game changer. Let us get tips on how to use an online credit card to control your monthly spending and get a hassle-free life. 

Choose a Card By Assessing Fees and Benefits

  • Annual Fees: Try to find a premium card with zero joining fees. Other than zero-fee lifetime free credit cards, all other cards have a non-refundable annual fee. There are cards which offer an annual fee waiver on achieving milestone spends. 
  • Interest Rates: Don’t choose credit cards with exorbitant interest rates. The idea of a credit card is to avail free credit, and it should not be the reason for shouldering high interest. So, choose a credit card which offers low interest rates. 
  • Late Fee: Delays in bill payment attract a penal fee. Payments should be made on time to avoid such costs. 
  • Foreign Markup: Swiping your card overseas attracts a foreign currency markup fee, which is usually in the range of 2.5% to 4%. The markup rate is revealed in the terms and conditions. Yes Bank First Exclusive Card gives one of the lowest mark-up fees at 1.75%. 
  • Rewards Program: Check for the expiry of reward points, and also find out how to redeem the reward points. There may be extra charges to redeem the reward points, and few cards also enable redemption of reward points against annual fees. Learn how to maximize reward points.

Categorize Your Expenditures 

Credit cards give you a clear picture of your spending patterns. After tracking your spending habits, you will understand where you are spending more. Then, you can choose a card which provides maximum rewards in that category and also adjust your budget accordingly. 

Automate Bill Payments

Tracking each and every expense will lead to effective budgeting. So, it is ideal to track even small bills like telephone bills, electricity bills, internet, etc. Set up automated payment alerts for your bills so that you don’t miss out on payments and maximize rewards. 

Set A Spending Limit   

Setting a spending limit both daily and monthly will help you plan your budget accordingly. Track the spends on your credit card online. At any point in time, if your spending gets close to the limit, then raise the budget to a more reasonable level accordingly or reduce your expenditure. 

Set Aside Reward Points As a Bonus 

You should consider reward points and cashback as a bonus rather than an income. You can save your reward points as a backup or for emergencies. If you have multiple cards, you can set auto alerts on the card that gives the maximum reward points. 

Credit Limit 

The maximum amount that you can spend on the card is called the credit limit. Make sure that the monthly expenses do not go above the sanctioned limit. A good credit history will lead to higher spending limits, and will increase your credit score.

Compute Your Expenses.

You should consider all your fixed expenses like utility bills, rent, petrol, internet, etc. You must also take into account all your variable expenses like groceries, recreational expenses, etc. Other recurring expenses like educational costs, holiday expenses, gifts etc. must also be included in calculating your expenses. Set aside a specified amount every month for savings and build a corpus for exigent situations. It is ideal to plan ahead for your expenses and savings as it will help you manage your finances better. It will save you energy, time, and money in the long run. 

Configure Account Alerts

Configure your online credit card account for alerts in the form of text messages or emails. Many credit card companies have the feature to set up account alerts when your credit limit is reached or when payments are due. Making use of this feature will be useful for keeping your finances in order. 

Conclusion 

Using your credit card responsibly will help you minimize monthly spending. It will help you build a great credit score, which in turn will help in reducing the interest. If you use a card with a good rewards program, you can save amply on each purchase. Also, maximizing your grace period will give you time with your finances. On the whole, using your online credit card judiciously can help you control your monthly spending and get a hassle-free life. 

FAQS How To Use An Online Credit Card To Control Your Monthly Spend And Get A Hassle-Free Life

1:Is it okay to have 3 credit cards? 

If your goal is to get or maintain a good credit score, two to three credit card accounts in addition to other types of credit are highly recommended. This combination may help you improve your credit mix. Lenders usually like to see a broad range of credit types on your credit report. 

2:How to use a credit card for monthly expenses? 

You can use your credit card to pay recurring monthly bills. Set auto pay alerts for monthly bills such as utility bills, internet, cell phone bills, or netflix membership fees.