Your credit card statement says a lot about your spending behaviour and financial conduct. Rather than spending time finding hidden charges and reflecting on whether you really needed what you bought, take a step back to look at the bigger picture that your credit card statement is trying to show you. The best thing to do is to read between the lines and work your way towards achieving financial wellbeing.
When you look at your credit card statement, you can find yourself fitting into one of the following types of credit card spenders. Here’s a look at what they are and what you can improve upon.
- The over spender
When you see a big fat credit card bill in your hand every single month, then you probably fall under this category. You may tend to use up your credit limit to the fullest and even over utilize it to avail the overdraft facility. The concern here is that you use a credit card to meet not only your needs, but also your wants and desires, without assessing whether you can afford to pay it all back. This may be a sign of unhealthy finances. Remember, failing to pay your credit card bill forces you to part with an interest of 3% to 4% per month, which keeps on accumulating until you close all the dues. To avoid this, make sure that you use your credit card prudently by reducing your dependency on credit.
Follow these simple practices. Swipe the card only when it is absolutely necessary. You can keep control of your spending pattern by reducing the number of credit cards that you use. Next, you may cut down on shopping at every sale or trying out every new restaurant. Bring about a discipline in how you spend your money so that your credit card spending is curtailed over time.
- The thrifty spender
If your credit card bill is more or less balanced and rarely exceeds 70% of your credit limit, you are probably a thrifty spender. You spend economically and carefully. You may be an essentialist who doesn’t believe in extravagance and luxury or simply someone who manages your personal finance with flair to know what is within your means and what isn’t.
As a thrifty spender, you are prudent and careful when it comes to using your credit card as you don’t go about swiping it to buy unnecessary things. However, ensure that you maintain the same spending pattern in the times to come and keep boosting your credit score. This will make it easier for you to access credit via a loan when you need it.
- The frivolous spender
You may be surprised when you assess your credit card bill statement and find out that you spend on too many things that you don’t actually use. This spending behaviour may suggest that you are a frivolous spender who may spending simply thanks to peer pressure or in the fear of losing out.
The problem here seems to be more of an emotional nature. If you keep your emotions on tab, you may be in a better shape to control your finances too. Keep in mind not to make unnecessary purchases. And if at all you make them, keep track of all your expenses and the money you have in your account until your next pay check or income. Then pay your bills on time. Another solution for you can be to pay attention to your reward points and shop using them to save money and cut down on your credit card bills.
- The miserly spender
If you are someone who hardly uses the credit card, then you may not be using your card to the full potential. Though using a credit card may sound scary to you as it means you are buying now and paying later, using it in a right way will actually help you save a lot of money. You can make use of the reward points that you get on spending with the credit card to shop for great merchandise and services via partner sellers. You may also get cashback, discounts and other money-saving deals.
What you can do is understand all the rewards you can accumulate using your credit card, go online to see the rules regarding the redemption of points, see the fees and charges and then calculate what you stand to save by using the credit card. Also, be informed about how repaying your credit card bill each month can boost your credit score. This will help you make the most of your credit card.
- The impulsive spender
Chances are that you give into temptations too soon or fail to assess the purpose of what you purchase. You may relent to the immediate urge of buying, say, an expensive chandelier. First of all, it costs a lot. Secondly, you may not have saved enough for it or even made any provisions for it in your monthly budget. So, you simply decide to swipe your credit card to pay for it. When you go home with your grand chandelier, you doubt if it even goes well with your living room setting. You also doubt if you can afford to pay for the increased electricity bill amount owing to the chandelier.
If all this sounds like you, understand the simple truth that just like acting impulsively can cause harm, purchasing impulsively too can suffocate your finances. Be conscious of your whims and fancies and control them to avoid any burden on your financial life. Remember that when you receive your credit card bill and fail to pay it in full, you’ll be charged an even bigger interest rate. So, track your spending, control your urges and give yourself a budget to follow.
So, examine your credit card statement carefully and learn about the pattern of your spending. Note where your money is going and how much you are spending on each category. To gain the most from a credit card, apply for a Bajaj Finserv RBL Bank Super Card and use it to gain more from every purchase. This card gives you the power and benefits of 4 cards in 1 by letting you use it as an EMI card, a loan card, a cash card and a credit card, as per your needs. You can also avail an emergency interest-free loan on your existing credit limit and withdraw interest-free cash from ATMs anywhere on the globe. Apart from this you can earn rewards, cashbacks, and discounts for a host of purchases and transactions. To gets started, check out your pre-approved offers to get instant approval on your application. Enjoy hassle-free credit card application and processing and utilise your card to enjoy unlimited per