Skip to main content

A Credit Card Can Pay Off Each Month – Today in the modern era, most people have shifted their payments from physical form to digital form or in the form of cards. Using a credit card for your monthly expenditure is super convenient and saves you time, but it has some cons, too; for example, it can put you in huge trouble and bundles of debt. It is why you should question yourself before using credit cards.

Why should you put your expenses on the credit card?

Understanding credit cards and how they work is a complicated process. There are specific rules and trappings, so only if you fully understand the credit cards can you opt for putting up all your expenses on a credit card. Good understandings of credit cards and excellent financial management skills are necessary if you want to put up your costs on a credit card.

Budget Planning:

If you know that you have all your money on one card and have to pay it back by the end of the month, then it is pronounced that you will stick to your budget. A proper budget will help you stay away from overspending and refrain you from debt troubles. Budgeting helps your money to be in control, and you prioritize your needs and not your wants. The paying back of your credit depends on your income.

Through a credit card, you have the surety that you have enough money, but you also have an idea that you have to pay it back and spend the money wisely. If you have a credit card and your expenditures are on a credit card, then budgeting comes in hand. A credit card expenditure will help you stick to your budget because you fear that you cannot pay back in time and then be charged up with interests. Using a credit card for expenses is an excellent option to stick to your budget.

Credit score improvement:

If you own bank accounts or credit or debit cards, you already know the importance of credit score. If you can pay back your credit card company monthly, then it is a high chance that your credit score will increase. When your credit line increases, you are most likely to receive a money loan in an emergency. With a high credit score, ultimately, the rewards a financial institution provides also increases. Paying off every month is a great way to boost your credit score, and due to this, your credit limit also increases. If you use money according to your income, then your utilization rate is less, which helps you even more in improving your credit score.


Spending your monthly expenses through a credit card helps you to earn rewards and gift cards. It helps make credit points for those who\ can redeem to avail discount offers from the partnered brands. Earning rewards and cashback does not allow you to earn money, but it surely helps save a little bit of money you can spend in buying what you want other than your needs.

These rewards help you gain and enjoy several benefits, for example, travel benefits, and you might get a free flight or discount on a flight, have access to the airport lounge, and free bag check-in. While traveling, you might get discounts on hotel booking or complimentary upgrades. You get a lot of deals on dine-ins and drinking bars. You get gift vouchers for clothing brands and discounts on groceries. Moreover, with every transaction, you earn credit points. Who can redeem credit points in your wallet, or you can burn your points to avail discounts.

You earn cash back S on various transactions, this cashback range from 1% to a maximum of 6%. Although such cashback does not give you a lot of money by the end of the year, you have a good amount of dollars in your wallet. For example, in the United States of America, if you go grocery shopping for $400, you get a 6% cashback which annually makes $288.

Tracking your expenses:

Tracking is a crucial step for financial management. Track where your money is coming from and where you are spending it. If you put up your expenses on a credit card, you can easily track your money. With every transaction you make, the credit card company will send you a text message, or if you are using an online web or app, then all your credit card history and purchase history are recorded there. It will help you know where you spend your money and cut it down to save up. These tracking records will also help you to make a budget to make your finances more manageable.

Easy to carry and handle:

The credit card allows you to do transactions without carrying money. It saves you from the hustles of carrying a lot of money in your wallet. You don’t have to take e vast amounts of money when you have a credit card and can pay for your purchase with just a swipe of your card. With the evolution of e-commerce, you can use your credit cards online and do your transactions in a few seconds with very few simple clicks. Moreover, it is very safe to use. You are saved from pickpocketing, and there is less risk of robbery. Even if your credit card is with the thief, you wouldn’t be charged for fraudulent activity, and eventually, everything will sort out after investigations.

Purchase protection:

Several credit card companies offer purchase protection. Purchase protection enables you to have an extended warranty, return products. If your product is damaged or stolen, you get another one with discounts. If your phone is damaged or your car is damaged, you can use the specific credit card to get deals.

Peace of mind:

Whenever you pay off balances, you achieve a state of peace of mind. If you can afford to pay off your credit card balances each month, then you are relieved that at least you have paid off your debts and still can manage finances.


The credit card gives you financial flexibility; you have the freedom to use your money. Whenever there is a financial emergency, you have money available on your card, which is the freedom to use the money whenever you want. If you use your credit card responsibly, your credit score increases, and the limit of your credit card also rises, which is the freedom you have for your money.

What expenses should you put on your credit card?

Budgeting is a critical task when it comes to using a credit card. A good payment strategy is vital to cover up your monthly expenses without putting you in trouble of debts or lowering your credit score. You should know where to spend and what expenses are safe to put up on your credit card.

•             Pay for your essential items through a credit card. Utilities like groceries, gas, water and electricity bills, etc. Pay for services like trash collection and other such services through a credit card. Since your daily utilities are a need and you have to pay for them at all costs. So put up your utility expenses on a credit card. Also, remember to search whether the utility companies where you pay for your essentials take any extra charges for credit card transactions or not. If they take extra care, then make sure that it is beneficial for you in credit points.

•             Pay your car and home insurance monthly through your credit card. These insurance are for a lifetime, and every month with small amounts, you can cover them up. Remember to check if the companies are taking some extra charges or not. If they take an additional fee, don’t put up this on your credit card; instead, try to save and pay in bulk.

Many of these services accept credit card payments.

•             If you have a budget for your entertainment purposes and have enough money to pay for monthly subscriptions, then put up this expense on the credit card as well. Many of these services accept credit card payments. Along with this, they offer cash backs as well, so if you can afford them, then go for putting up this on autopay. But remember not to overuse them and keep in mind that you have to pay for other needs.

•             Your internet and phone bills are the perfect option to put up on a credit card. Most internet providers and phone companies do not charge extra on credit card payments, so it is safe to put up internet and phone bills on a credit card.

•             Shopping and food in restaurants are also included in those expenses, which you can pay through a credit card. Credit card companies offer a lot of discounts on restaurants, bars, and shopping brands. Either you can have gift vouchers, or you can burn your credit points to avail discounts. Some also offer cash backs. It won’t help you earn money, but it can save you some money by the end of the year.

Tips to put expenses:

  • Make sure to have a budget and track all of your expenditures. Budgeting will help you to spend less and spend according to your needs. Track your money. For tracking, make an excel sheet and enter every penny you spend.  This tracking will help you in understanding your way of expenditure and what expenses to prioritize. You will know whether you are spending more than you earn or spending according to your income. Tracking your money will also help in cutting down some of the expenses if needed. So for effective financial management, you need to stick to a budget and track your expenses.
  • Credit card payments are often automated. Recheck your unwanted expenses. Make sure that you plan your budget accordingly with the automatic payments. It is human nature that if you put everything on a plastic card, you are most likely to forget about your prices and subscriptions. As a result, you lose track of your expenditure. So regularly check automatic payments to be not surprised by extra charges by the end of the month.

Credit card transactions often come with extra charges

  • Credit card transactions often come with extra charges. Many companies have some additional fees for credit cards. Make sure to check the costs. If the charges are more than your rewards, cancel the subscription from that company because it takes more than you planned.
  • Have an eye on your credit use. Try to make your utilization rate lower so that you can have more credit scores if possible; pay back every week so that your balance does not increase and the utilization rate is lowered.
  • Make a mentality that the money on the credit card does not belong to you, and you have to pay it back. Constantly remind yourself that the money on a credit card is cash. Record each of your spendings beforehand. In this way, you would spend wisely and be able to pay back in full by the end of the month.

Why shouldn’t you put expenses on a credit card?

Sometimes you are uncertain of some situations in your life. If you put up all your expenses on a credit card, who knows what might happen next, and you are left with no money. Putting up payments on the credit card has its disadvantages as well:


When you put your significant expenses on your credit card, it indeed results in bankruptcy. As you approach a specific credit card limit. The bank management will often increase the limit to several hundred dollars higher. If you do not pay down your balances and keep spending more. You will eventually owe hundreds or even thousands of dollars on that card. Bankruptcy leads to both positive and negative consequences. On a positive note, you are declaring bankruptcy results in the discharge of your previously incurred debt.

Consequently, creditors may not call you for the debt collection. However, who can lift this opportunity if the value of the property you own is less than the debt owed. The negative impact is that it depresses your credit score. And you may also lose your property to pay off debt.


Overspending with your credit card is so easy as you would have experienced that you tend to buy 2-3 things. When you go to the supermarket but end up spending double the amount you planned. One of the significant causes of overspending is the disconnection you face between making purchases and paying them off with cash. You don’t realize what you spend by using a credit card rather than money. Moreover, multiple credit cards also lead to overspending because you can’t manage your balances among all credit cards. Studies have revealed that you tend to overspend when you are angry, in stress, in jealousy, or in sadness. Boredom also leads to overspending. So remember to control your emotions and postpone your shopping when you are upset.

Credit score:

Your credit score is essential as it determines how much credit lenders are willing to grant money. A bad credit score is causing late credit card payments, defaulting on a loan, filing bankruptcy, etc. All these terms show you are at high credit risk and not being able to keep your costs. A poor credit score can have a wide range of consequences. It leads to a higher interest rate and fewer loan options. Not only this, it can even disrupt you in your job hunting. It is possible to increase your credit score by taking a keen interest in limiting. And your expenses and keeping your utilization rate lower.

Interest rates:

Credit card companies charge you interest on your unpaid balance and add it to your actual balance to be paid off. So if you don’t pay your balance on time, you will end up spending massive amounts of interest. There are different Interest rates for other uses of the card. For example, you buy something in the shop through your credit card to be charged with a low-interest rate. But you will be charged a higher interest rate if you withdraw cash from your credit card. To avoid interest payments, pay off your outstanding balance on time and use Interest-free balance transfers on the credit card.


To conclude, putting up expenses on a credit card is a good idea as long as you are disciplined with the usage of your money. Good financial skills and a strict budget is required for this. If you stick to a budget, then you can be saved from debt and interest troubles.

The Credit Card Reward Apps In India | The Best Credit Card Reward Apps