Shopping can be fun but if you’re doing it wrongly, you might overspent and bursting your credit limit.
Every credit card has it’s own limit and each person credit limit is different. Even though with that say, there are no stopping on you maximising your credit card and bursting your credit limit when shopping.
You see when you maximize your credit card, it can hinder you from making additional charges and there will be a hefty changes on your overspending!
Here are the 4 steps on how you can avoid overspending and bursting your credit card limit
1. TRACK YOUR SPENDING
Spending is not an issue but you should have the awareness of your spending habits and this will help you control your credit card usage. What you need to do is to monitor your billing statements by checking your balance in the bank’s online app or website. By staying on top of your spending will help you foresee any event leading up to going beyond your limit. Thus, you must adjust your expenses accordingly.
2. CHECK YOUR BALANCE REGULARLY
Before making a purchase, you need to check your available credit balance using your bank’s mobile app. If your credit card issuer does not have an online app, call the bank instead. You can find the contact details at the back of your plastic card
With check before hand, this will let you to determine whether you should postpone your purchase or to pursue the checkout counter on the spot.
3. DO NOT INCREASE YOUR LIMIT RIGHT AWAY
If you have been constantly spending beyond your credit card limit, it’s a sign that you might be overspending. In your mind, you may think that the logical step to take is to ask for a limit raise. To be absolutely honest, if you’re asking for a limit raise within six months of receiving it, this indicate that you are having financial difficulties.
It would be best to wait for bank to automatically increase your credit limit is the best option. This way, you will be able to employ strategies dedicated to spending within your means.
4. Stop Using Your Card When You’re Coming Close to Your Credit Limit
As soon as you’ve found out that your balance is getting close to your credit card limit, stop using your card until you’ve paid off the balance. Leave it at home, if you must. If you bring it out, it would be high possibility that you will be using it and maximising your credit limit!
Conclusion is that when you have the credit card, you have your responsibility. With great power (credit card), it will comes along with great responsibility (stolen from Spiderman). You need to use your credit card responsibly and monitor your spending regularly.