Here’s a simple explanation why credit cards can be useful for budgeting – monitoring your expenses and managing your cash flow.

With credit cards, you can monitor every expense that contributes significantly to your budget plan. They come with a maximum grace period of 50 days to clear all dues without incurring any interest. This helps in managing your cash flow.  

Furthermore, with credit cards, you get reward points, cashback, bonus points, etc. which can be redeemed for vouchers, tickets, discount coupons, etc. Such bonuses can cut down your regular expenses like purchasing grocery, movie tickets, and others. While opting for a credit card, don’t forget to compare features of different cards from several lenders. An RBL credit card in association with Bajaj Finserv offers exquisite benefits and rewards that lets you save more on your expenses. 

As such, applying for a credit card will be a wise thing to do. However, there are many reasons for rejection of these applications. So keep a check on all these factors while applying.

Here are a few steps through which a credit card can become handy when planning your budget:

• Enlist all your expenditures

The first step in creating a monthly budget is to enlist all expenditures, and in this case, also, you have to do the same. Create a list of your fixed monthly obligations:

• Rent
• Utility bills (electricity, phone, gas, etc.)
• Insurance premiums
• Tuition fees, etc.

Paying off utility bills and insurance premiums with credit cards can be one of its best uses. Create a list of all other expenses that will include the necessary ones and also the less crucial ones.

Now, find out the expenses that you can pay with your credit card and highlight them.

• Tally all of them up against your income

The next step will be totally all of them up and draw a comparison with your income. Thereby, you will get to know your position at the end of a month – whether you have a deficit or a surplus.

A deficit will indicate that you are in debt while a surplus will indicate the opposite. Generally, you should have a surplus at the end of the month.

• Eliminate the unnecessary expenses

Eliminate unnecessary expenses wherever possible. Reduce expenditure on items that you think are less important. This will increase your surplus and help you get out of debt.

• Start paying the expenses with your card

Once you have finalised your budget, you can start paying the expenses with your card. Ensure that the total purchase you make with your card is around 30 to 40% of your credit limit. This will improve your credit score and help you avail additional credit in future. 

Note: Make sure that you pay the card dues in time.

• Create a new budget for the upcoming month

Don’t relax after creating the budget plan; start preparing for the next month. With every passing month, you gain experience in formulating a more efficient budget plan for the upcoming month.

The Bajaj Finserv RBL Bank SuperCard is one such card that helps you create a proper budget plan. It comes with several industry-first features and combines the power of 4 cards in 1.

Bajaj Finserv also provides pre-approved offers on these RBL credit card variants which make them easily available to applicants. Pre-approved offers are also available with personal loans, business loans, home loans, EMI financing and other financial products. These offers make the process of availing finance quick and straightforward. By providing a few essential details, you can check out your pre-approved offer. 

Author Bio:
Nishant is a passionate blogger. He has a very diversified skill of amazing artwork like Card Making, Painting and Crafting. He loves keeping himself up-to-date with the news and happenings around. He is always open to learning and shares his experiences on Greetings of the Day.