Credit Cards are digital currency and are very popular across all sections of the society. Government is also encouraging the use of cashless methods of transactions and Credit Cards are the best alternative to the Cash. However, it has been often noticed that people start overspending on Credit Cards. There are hundreds of other questions which are being asked by the Credit Card users from the Financial Consultants and Experts. Here we are giving you the top 10 tips to manage the credit card spending.

The questions which are often asked by the Credit Card users are listed below:

What is the best way to effectively control credit card?

What are three positive ways to manage your credit card use?

What is the best way to handle a credit card?

What is the best way to manage credit card balance every month?

How to control overspending on credit card?

Based on the questions often asked by the Credit Card users, we have compiled Top 10 Tips to manage the credit card spending. If you follow all or most of these tips, you will be able to control your credit card spending and overspending. Apart from this, you will be able to maintain a very good or excellent credit score also by following these tips.

Top 10 Tips are being given below:

1. Always keep only those Credit Cards which have no Joining Fee or Annual Fee. There are several Banks offering such cards.

• Do not keep more than 5 or 6 Credit Cards as it will be very difficult to manage the credit cards if you are holding a large number of Credit Cards.

• Try to use your credit card for buying such items which are essential items in nature- For example, your credit card should normally be used for purchasing Grocery items, Paying Government Dues and Taxes and Mandatory payments like Rent, Water, Electricity expenses.

• Always avoid to use the Credit Card for purchasing non-essential luxury items like Jewellery etc.

• Always note down the Billing Cycle of all the credit cards held by you along with the due date of payment. Both Billing Cycle and Due date is fixed for each credit card. Each Credit Card allows around 50 days free credit period. Try to utilise the entire 50 days fee credit period to take the full advantage of credit card instrument.

• If your Credit Card Billing Cycle is from 15^th of every month, then your due date shall be after 20 days from the date of your credit card statement. For example you have purchased some items for Rs.10,000 on your Credit card on 16^th December. Credit Card Statement for this expense on credit card shall be generated on 15^th January and you will be required to pay this amount by 5^th February. So from 16^th December to 5^th February is the free credit period. You should try to manage your credit card purchases, considering the billing cycle, bill generation date and the due date.

• Only purchase those items, which are absolutely essential to purchase. Things which are not required should not be purchased on Credit card.

• Never pay Minimum Amount Due on Credit Card. Always pay Full Amount due on Credit Card preferably in online mode by or before the due date. If you are making payment through any offline mode then make the payment at least 3 days before the due date.

• Never use Credit Card for cash withdrawals. This should not be done under any circumstances.

1. Never take Loan on Credit Card. This is always costly as compared to Personal Loans as GST is also charged on Loans on Credit Cards whereas there is no GST on  simple Personal Loans

Also Read : Which Is The Best Credit Card For Your Wallet?