There are reasons that using a credit card to pay for all the bills you face every month can work to your advantage.  Simply having a credit card that you put all of your purchases and expenses on can make things very straightforward by having all of your expense in one easily traceable place.  If you are clever and careful in this approach and in the management of your credit card debt, using your credit card for all of your monthly expenses will be more efficient, as well as using your credit card rewards program to its utmost.  There is also the convenience of one credit card payment at the end of the month.  Maximize your charge card benefits, easily review your transactions and write one monthly check. 

In order to be able to use this method effectively you have to have a spending plan in place.  With a budget that is carefully outlined you can make sure that you never end up overextending yourself on the credit card.  You have to know how much your predictable or recurring costs are, like your standard monthly bills that usually don’t fluctuate too much.  After that you can outline a predicted amount that you will spend on the things that cost a little bit different each month.  These are things like meals and entertainment.  Once you have your expenses outlined you have to measure this against your income to decide exactly how much you can spend on each of these items.  You should also keep an eye on exactly how much you have spent on your credit cards to make sure you are not exceeding the limits you have set for yourself.

The best way to take care of paying bills is to set up an auto pay system with a credit card online to have the bills automatically applied to the card as they come due.  When you are trying to select the best credit card that works best for you, you should take into consideration where you make most of your monthly purchases.  This way you can select a credit card that is accepted at the places where the majority of your money is spent and obtain one with the best credit card rate.

The convenience in terms of tracking your monthly expenditures is simplified when you put all of your payments on your credit card.  When you only have one statement that tracks all of the purchases you’ve made you don’t’ have to track all the purchases you’ve made through a normal checking account or cash purchases.  The only thing other than your credit card statement you need to track is the simple payment from your primary account to pay off the balance on your card.  Even in a pinch use the credit card services with the inherent attribute to defer payment for a few weeks.

You also are helping reduce the possibility of banking error by paying for all your transactions with a credit card.  Usually you have a long and complicated checking account statement to reconcile against your spending, but when you buy everything with your credit card you simply have to follow your credit card payments.  With a credit card online, checking the statements, charges, credit card interest rate, credit card apr and the balance is convenient and easy to do.

Credit card companies provide a number of cards that have a variety of reward programs in place and there is a lot of possibility to find a credit card that will provide valuable rewards, especially when you are maximizing your use of the card by charging your monthly expenses to it.  The options here include cash back cards, which offer you a percentage of any money you spend in cash back.  This can earn a great deal of money back from purchases especially if you are careful and never carry a balance on the credit card from month to month.  If credit card cash back isn’t what you’re looking for, there are travel cards that enable you to earn miles that you can apply towards flights, as well as credit card rewards that earn you points which are redeemable for goods and services.

Finally, you have to watch all the terms and conditions carefully when signing up for a credit card.  The interest rates, annual fees, and introductory interest periods can vary greatly from credit card to credit card.  You have to compare these credit card interest rates, charges, and fees against the potential rewards, and then check in with your own financial situation and spending habits to decide which of these cards is going to work best for you.  Once you’ve done that, it is simply a matter of wisely managing your new found credit.  Never be late on the credit card payments, try to make the most of any rewards earnings that are available to you, and try to carry as small a credit card balance as possible.

Tags: , , , , , , , , , , ,

No user commented in " Credit Cards for Everyday Expenses "

Follow-up comment rss or Leave a Trackback

Leave A Reply

 Username (*required)

 Email Address (*private)

 Website (*optional)