Four strategies for effectively managing your spending across various credit card accounts

Credit cards can serve as powerful financial instruments.

When utilized wisely, credit cards can safeguard against fraud, provide valuable rewards such as cash back and travel points, and help you build a strong credit score over time. Conversely, poor management can lead to harmful financial habits.

It's essential to pay your credit card bills promptly and in full each month to maximize your accounts (and to protect your credit score). The key to achieving this is a solid budgeting strategy.

You require a reliable and straightforward method to monitor your credit card usage—especially with multiple accounts. Continue reading for four expert suggestions that can assist you in tracking your credit card expenditures and payments. Properly tracking your spending can also turn your credit cards into a valuable tool for better financial management.

Monitor your spending with an app

Whether managing a single account or multiple credit cards, it's smart to establish a system for tracking your expenditures to stay within your monthly budget.

Fortunately, numerous apps exist that allow you to view all your credit card transactions in one place, and more. Here are some top choices.

Dinogo app

Our very own Dinogo app offers a free and user-friendly platform that consolidates all your credit cards in one place. You can easily see your outstanding balances and categorize your purchases, making it simpler to adhere to your monthly spending goals and determine which cards to use for different purchases to maximize your rewards.

The TPG app includes features designed to help you accumulate more points and effectively redeem your credit card and loyalty rewards for the best value as you pursue your travel ambitions.

Ideal for: Credit card users seeking a free and efficient system to manage their spending and enhance their rewards earning potential.

Qube Money

Qube Money is more than just a budgeting app; it's an online bank combined with a digital money management platform. The app offers a free version, a premium version for $9 per month if billed annually or $12 if billed monthly, and a family plan for $15 per month if billed annually or $19 if billed monthly.

Your Qube Money account is linked to a debit card that requires you to "unlock" it before each transaction. However, you can use a workaround to pay with your credit cards instead—a wiser choice than debit cards in many situations, especially regarding fraud protection.

Here’s how to track spending in the app while still using credit cards. First, set up "qubes" for your monthly variable spending goals, such as $600 for groceries, $400 for gas, and $250 for dining. Next, create another qube named "Credit Card Spend." When you make a purchase with a credit card, manually transfer the amount from its respective qube into the Credit Card Spend fund. Finally, use the funds from your credit card qube to pay off your credit card bills.

Ideal for: Enthusiasts of zero-based budgeting and manual expense tracking.

Monarch

There are numerous apps available to help you manage your finances. Among them, Monarch stands out as one of the most popular spending trackers, known for its extensive features and user-friendly design.

The app offers a comprehensive overview of your credit cards, bank accounts, and even cash apps like Venmo, all in one place. It can also track your investments and real estate holdings, allowing you to assess your total net worth and spending habits. Monarch is priced at $14.99 per month or $69.99 per year.

Ideal for: Individuals seeking a digital solution to monitor their spending, debt, and net worth.

Enrolling in free transaction alerts from your credit card issuers is an effective way to stay informed about your credit card spending. Depending on your card provider, you may be able to set up automatic text or email notifications for various account activities, such as:

• A transaction exceeding a specified dollar amount (which you determine)
• Your account balance surpassing a certain threshold
• Your balance nearing your credit limit
• Approaching monthly due dates
• Detection of suspicious activity on your account

Access your online account to explore the mobile alert options provided by your card issuer and customize them as permitted. Account alerts not only give you greater control over your monthly spending but also serve as an effective means to prevent credit card fraud, as you'll quickly spot any unauthorized transactions.

Keep in mind that despite having transaction alerts, it’s important to carefully review all your credit card statements each month. A detailed statement review can help you identify potential issues like billing errors or fraud, allowing you to take necessary action.

Set up automatic payments

Some individuals hesitate to switch from debit card to credit card usage due to fears of accumulating debt and incurring high interest fees or late charges if they miss a payment. However, there’s a straightforward method to ensure you pay off your balance in full each month (thus avoiding interest charges): you can schedule automatic payments with each of your credit card providers.

When you log into your online account to set up autopay, you should have the option to choose from the following payment methods:

• The minimum payment required
• Your total statement balance
• A predetermined payment amount

Paying off your balance in full is the ideal choice for both your bank account and credit score. However, you may prefer to maintain greater control over the timing of larger withdrawals from your account.

Even if you don’t wish to set up a full automatic payment, establishing a draft for the minimum payment due can still be a smart move. This can help you avoid unintentional late payments and the negative repercussions that may accompany such mistakes.

Make multiple payments

Another effective strategy to manage your credit cards is to make several payments each month. While this approach does require some additional effort, it offers two significant advantages.

The first benefit is enhanced budget awareness. By making payments on your credit cards weekly or even bi-weekly instead of just once a month, you can stay more connected to your spending. For instance, if you allocate $600 per month for groceries, making multiple payments allows you to monitor how much you’ve spent and how much remains in your food budget.

Additionally, making several payments on your credit cards each month may help you keep a lower credit card utilization rate.

Credit utilization is a key factor in determining your credit score, making up 30% of your FICO Score. Maintaining a low credit utilization rate can positively impact your credit score whenever a lender evaluates it. Lower utilization indicates to lenders that you're less likely to default on a debt.

Conclusion

There isn't a perfect number of credit cards to have. Regardless of whether you choose to open a few or many, it's essential to manage your spending to keep your credit score healthy.

Fortunately, there are numerous strategies available to help you effectively monitor your credit usage and avoid any issues. Find a system that suits you and consider implementing backup measures, like autopay, for unexpected situations.

As long as you are dedicated to practicing smart credit card habits, your accounts will assist you in building a positive credit history while earning additional rewards along the way.