Tips to Incorporate Credit Cards into Budget

  | Published: 21 February 2020 | Last Updated On: 05 January 2021

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Credit cards are truly a modern-day marvel, these tiny plastic cards have revolutionized the way people spend money in the 21st century. For a lot of people using credit cards leads to overspending which can disturb their budgets. However, in reality like every other tool, the utility and effects of best credit cards in UAE are dependent on the skillset and knowledge of the user. If used without precision and care, credit cards can have a devastating effect on an individual’s finances. High rates of interest and late fees can easily land cardholders into a debt trap.

It is very rare to witness the best credit cards in UAE and budgeting simultaneously in the world of personal financial planning. Financial experts often comment on the ability of best credit cards in the UAE to efficiently manage expenses and cash flow.

There are several reasons for using your credit card to manage your budget. Responsible and careful usage of credit cards helps cardholders to build a good credit rating. Moreover, with the use of reward points and schemes, cardholders can make a profit and gain other attractive benefits like air miles, free shopping, heavy discounts on partnered products, etc. Best credit cards in UAE allow cardholders to keep track of their spending in different categories and identify the scope of savings and managing expenses.

If you are one of those credit card holders who struggle with managing expenses using a credit card, this article will help you to make your credit cards work in your benefit instead of working against you.

Keep all your Purchases and Utility Bills on One Card

The first step towards savings and investments is analysis and assessment. Using the best credit card in UAE for making all purchases makes it much easier to keep a track of spending for a given month. Cardholders should choose one card that can be accessed by both the partners for making purchases which will help to keep a record of money spent via credit card.

Cardholders can make a list of all expenses like utility bills, household bills, cell phone bills, and the internet followed by updating their method of payment. This technique manages to retain cash in your bank account and at the same allows cardholders to manage their expenses efficiently.

Review your Transactions

Reviewing transactions of your credit card periodically helps card holder’s to keep a satisfactory credit rating. Moreover, reviewing transactions ensures that your card is not subject to any scam like double charging or extra charging.

Look for Places to Cut-Down Expenses

Keeping a track of spending via best credit cards in UAE allows cardholders to assess places and categories where cardholders can cut-down expenses and save money. Cardholders can match their expenses for a given month from their credit card statement. This helps them to identify the scope of cutting down unnecessary expenses to save more.  

Pay your Credit Card Bills Timely

The first rule of responsible credit card usage is paying their monthly bills on time. Late payments lead to the imposition of heavy rates of interest, penalty and late fees which can destroy the value of your rewards. If you are confident enough you can ask your bank to provide an auto-debit facility every month that reduces hassle for a cardholder.

Choose a No-Foreign Fee Card

If you travel abroad frequently, using a credit card with no foreign fee helps cardholder to save an additional 3% on all purchases outside native jurisdiction. This strategy helps cardholders to earn reward points without overspending during international travel.

Set a Monthly Expenditure Limit

To manage your expenses efficiently, credit card holders should stick to a pre-defined monthly limit. While choosing this strategy it is recommended to keep an eye on your overall expenditure once a week. For instance, if you have set the limit for groceries around AED 500, try and keep it below AED 500 which will not only help you to manage your expenses efficiently but will also inculcate healthy financial habits that are very useful in the long run.

Make Use of Reward Points and Perks

Most people are aware of the fact that best credit cards in UAE offer reward that is the best way to extract maximum out of every penny that you spend. Very often credit card providers do not advertise benefits that act a barrier for consumers. To make the maximum use of your credit card rewards it is recommended you should go through card member agreement thoroughly.


Budgeting requires effort, consistency, and discipline to make it work for you. Cardholders need to keep a firm track of their expenditure to ensure that they spend the allocated amount only and not more than that.

Budgeting is a tricky task, using credit cards for managing budget can be an excellent way that keeps your expenses on track.