My first credit card - keeping track

rocket_girl

Hello,

I've always spent on a debit card before now, but I was thinking of getting a credit card to benefit from a cashback (or vouchers) perk. I have about £600pm income after rent and I could do my spending on the credit rather than debit card. BUT I must pay back in full and I must must must not overspend. My finances are tight such that if I overspent one month, there would not be sufficient laxity to pay it back the following month, and my income is fixed at this level for the next 3 years. So I want to make sure I don't make any mistakes!

Paying off in full each month seems simple enough, but I was wondering what techniques people use for keeping track of their spending? With my debit card I do this by checking my balance regularly and I also use an app called BillGuard which forces you to review every purchase. (I tend to use plastic for even small purchases, so it can get easy to lose track of the sums otherwise). Do most credit cards make it easy to access an up-to-date figure for your debt? Is it possible to put a voluntary automatic stop on the card once you reach a certain monthly amount of spending?

As a secondary question, I have Lloyds avios rewards cards already (used to be called Lloyds Duo - an amex and a mastercard). I got them for travelling but never used them. This was years ago so any introductory offers have long since expired. Are these considered good cards, compared to other cashback/perks cards that are out there? Obviously I would prefer cash to AirMiles but I don't have a £20k household income so can't get the Amex Platinum Everyday mentioned as top choice in the MSE article.

jonesMUFCforever

These days online and mobile apps on phones means you have access to your credit card statement 24/7.


What card you are eligible for will depend on your credit rating - have a look at the sticky at the top of this board.

MadProf

Some card providers offer text alerts when certain balance thresholds are met or will offer balance alerts on a weekly basis. It could be helpful but may also be too late - so set a "watermark" alert to let you know you're approaching your absolute hard spend limit.

I use YNAB and have a category for daily spends separated into sub-categories. I track my spend on my phone (using the YNAB app) as and when I use my cards and that way I'm always on top of how much I am spending and how much has been allocated for payments.

rocket_girl

Thank you both for the replies. Will look into YNAB.

CLAPTON

rocket_girl wrote: »

Hello,

I've always spent on a debit card before now, but I was thinking of getting a credit card to benefit from a cashback (or vouchers) perk. I have about £600pm income after rent and I could do my spending on the credit rather than debit card. BUT I must pay back in full and I must must must not overspend. My finances are tight such that if I overspent one month, there would not be sufficient laxity to pay it back the following month, and my income is fixed at this level for the next 3 years. So I want to make sure I don't make any mistakes!

Paying off in full each month seems simple enough, but I was wondering what techniques people use for keeping track of their spending? With my debit card I do this by checking my balance regularly and I also use an app called BillGuard which forces you to review every purchase. (I tend to use plastic for even small purchases, so it can get easy to lose track of the sums otherwise). Do most credit cards make it easy to access an up-to-date figure for your debt? Is it possible to put a voluntary automatic stop on the card once you reach a certain monthly amount of spending?

As a secondary question, I have Lloyds avios rewards cards already (used to be called Lloyds Duo - an amex and a mastercard). I got them for travelling but never used them. This was years ago so any introductory offers have long since expired. Are these considered good cards, compared to other cashback/perks cards that are out there? Obviously I would prefer cash to AirMiles but I don't have a £20k household income so can't get the Amex Platinum Everyday mentioned as top choice in the MSE article.

you don't say what your circumstances are but you should consider building up a float (savings) in case you over spend by 'accident' or an unexpected situation arises.

SnowTiger

CLAPTON wrote: »

you don't say what your circumstances are but you should consider building up a float (savings) in case you over spend by 'accident' or an unexpected situation arises.

Switching to using a credit card is a good opportunity to start going this because the OP will (effectively) defer their spending for at least a month.

Put the money aside and leave it earning interest somewhere.