Whenever you decide to apply for credit card, probably the fear of huge debts forces you to step back. You think that this card will tempt you to spend more and you’ll end up in a financial crunch.
However, the truth is, using personal credit cards like Bajaj Finserv RBL Bank SuperCard can be a good solution for paying your electricity bills and everyday purchases. It can help you stick to a specific budget range and thus, life will get simpler.
Before discussing the essentials of credit card’s budget management issues, know why we use it in the first place.
- It helps you manage cash flow by granting you a 30 days interest-free repayment tenor.
You can track your expenses which further helps you in budgeting. Many credit cards also come with online tools using which you can know and categorise your expenses. Now, you can easily apply for credit card!
Optimizing reward amounts with credit cards is another perk. Your everyday purchases and spending on the card let you get super deals on aeroplane tickets, hotel room discounts and a huge amount of cashback.
- Last but not the least; you can improve your CIBIL score with a credit card. This enhances your creditworthiness in the market and increases your loan approval chances in the future.
Now, that you know the benefits of using credit cards; let us check out the budget managing part.
1. Listing your expenses
If you are working on your budget for the first time, then try to chart down your monthly expenditures first. You can start this process by jotting down all your liabilities every month. Fuel payments, mortgage, house rents, monthly food spending, home utilities and insurance – all of these fall under your monthly expenses.
Make a list of your essentials, and also, you can add the not-so-essential purchases so that you get a definite outline.
Charting down your expenses gets more comfortable when you receive your credit card statement! It shows you exactly where and on what you have spent to determine your budget the next time!
2. Use credit cards for regular spending
Swiping the same card for your everyday purchases along with paying your household bills, petrol for car and other regular expenditures is a plausible thing to do. Tracking your expense is now easier when you utilise credit cards particularly for your daily expenditures. You can, in fact, evaluate and check your transactions every week.
[Note: Often, people can ask for a refund if they are not happy with the purchase on their credit cards. They can even dispute charges if they need and they do not have to worry about losing money as well.]
3. Paying balance more frequently
If you want to adjust your expenses through the month, start checking your budget every week. Otherwise, the risk of spending too much will prevail, and you will end up paying debts. It also proves pretty dangerous for future finances.
When you check your budget on a weekly basis, scheduling regular payment dates can prove useful. Recurrently paying the due amounts makes you stay on track.
4. Reward points or cashback
You can earn a considerable amount of reward points or cashback by using one particular credit card for your regular purchases. As the points add to your daily expenses, you will be surprised to find out how good deal the credit cards bring. Moreover, with Bajaj Finserv RBL Bank SuperCard, now you can avail terrific discount offers and reward points on lucrative deals.
Staying on budget with credit cards thus becomes comfortable and easy for every cardholder. Also, with Bajaj Finserv offering pre-approved loan offers, on credit cards, home loan, personal loan and business loan along with EMI financing on products and financial services, your buying process becomes simple and easy. Submit a few details and check the pre-approved loan offers!