Estimated reading time: 11 minutes
Learn how credit card tracking can help avoid overspending and stay on budget. Discover the benefits of monitoring your credit card expenses.
Get Out Of Debt Faster By Credit Card Tracking
There was a time when credit card tracking became a big part of our monthly budget because, like most people, our bill was far more than expected.
Most people shop with plastic more often than cash simply because it’s easy to do and widely accepted in Canada.
The problem with using a credit card for all your purchases is that it’s straightforward to overspend, so it can be depressing when you get your bill.
When you use cash, the premise behind it is when it’s gone, it’s gone, so there are no surprises for your budget.
This is also why budgeting cash jars is a suitable budgeting target for some people who find that cash keeps them from overspending.
I Need Help With Credit Card Tracking
Dear Mr CBB,
I’m a 30-year-old single woman who budgets her money, but I’m not that great when using my credit card.
Every month, no matter what I try, I get a larger-than-expected credit card bill in the mail that I struggle to pay in full.
My last credit card statement was $550, which was a surprise to me even though I’m a frugal shopper and was being careful.
I guess I shop more than I think I do, but I need to get this under control before it gets out of hand.
Right now, I was able to pay $400 on my credit card, so I have a bit more to pay before it’s paid in full.
My interest rate on the credit card is 19%, which seems high, but that’s what I was offered then.
I know you will probably tell me to cut it up and stop using it, but I like to use it for rewards points and shopping perks.
However, I also find that not having to go to the bank for cash is far more accessible as credit cards are accepted almost everywhere.
I keep some backup cash in my wallet, but only when a shop doesn’t accept a credit or debit card.
I’m not computer savvy and find that my online credit card statements are sometimes frustrating to understand.
What do you suggest is the easiest way to keep track of what I’m spending on my credit card each month?
Maura T.
Brockville, Ontario
Check Credit Card Status By Tracking It Yourself
Hi Maura,
You are not alone in the fight against overspending on your credit card, so this is a great question to address.
First off, I want to say that we have been in your shoes, and it wasn’t until we read the fine print on our credit card statement that we took a stance.
It’s almost shocking to know how much interest is being charged to people who don’t pay their credit card bills in full each month.
There were times before budgeting that we thought we were being careful with our expenses, only to find out we weren’t.
It’s so easy to tap plastic these days that unless we adopt some credit card tracking plan, we will most likely spend too much.
Whether you have a budget or not, tracking your credit card is essential to the success of your financial health.
Credit Card Pending Transactions
You can still spend more than you earn even if you are budgeting because I’ve seen it happen.
When I log online to track my credit card, my PC World Elite Mastercard status sometimes doesn’t always show pending purchases, which can mislead many cardholders.
What are credit card pending transactions?
Pending transactions are deducted from your available credit, are not final, and may differ from the posted amount.
Pending transactions cannot be disputed and generally post with-in 7 days.
For example, if you just made a purchase, it may take time for your credit card company to process it and post it to your account.
That means the amount you see as your available credit might not be actual, as pointed out above; it may differ.
You have to check back every day, which can become frustrating when you only want to know how much you’ve spent on your credit card.
Credit Card Spending Tracker
I know many people, including ourselves, get mobile notifications when our credit card is used, showing us how much was purchased.
This excellent credit card tracking mobile alert also tells you if you’ve spent over the threshold you created in your settings.
I don’t find that it tells you how much your current bill is and perhaps that’s because they want you to keep spending.
I don’t know, but maybe there are credit cards out there that will offer a credit card tracking mobile system without having to check an app.
We don’t have our credit card on a mobile app only because if we want to look up anything, we do so on our laptops at home.
Even so, those pending expenses have to be factored in, and they don’t always show right away, or they can be easily missed.
Minimum Payment
Before I begin, I want to discuss the minimum payment on your credit card statement.
If you only pay the minimum payment, you are paying far more interest than you imagined.
This may be a viable option for those who may be attacking your credit card balances with the Snowball method of paying off debt.
When you are not doing so, paying the bill in full and stopping spending if you find this impossible is essential.
What is a credit card minimum payment?
Any past due amounts, plus: your statement balance if $10 or less, or the greater of (a) $10 (b) 2.2% of your total statement balance (5% for new accounts issued to Quebec residents as of July 1, 2019), or (c) The interest charges and fees billed on the current statement plus $1.
PC MasterCard
Credit Card Limit
When I received my first Canadian credit card, my limit was only $5 for the month since I was a new student in Canada.
Over the years, I built credit in Canada, which allowed me to increase my credit card limit.
The great thing about credit cards is that you can request a decrease.
One of the reasons this may be a viable option for someone who can’t control their credit card tracking is less available credit.
You can’t spend any more than you are allowed to, so if you decrease your credit card limit, this is a starting point.
Receipt Tracking
When we started using our Excel budget, one of the steps in our budgeting mini-series became all about receipt tracking.
Almost every business I transact with offers me a receipt; if they don’t, I ask.
I want to track my spending for budgeting purposes, and you should, too.
If you think it’s too much work, you don’t think your finances are worth your time.
You get what you put in, and if you don’t, don’t be surprised when the debt starts piling up.
Online Shopping Can Cause Huge Credit Card Debt
If you’re careless, online shopping can add to your debt load relatively quickly, so you should track everything.
New research suggests online shoppers are often tempted to spend impulsively, sometimes racking up hefty credit card debt in the process.
Not only are shoppers making a habit out of buying things online, but it’s not uncommon for consumers to spend more money than they planned.
In fact, 42% of respondents said they had blown their budgets while shopping online at some point in the last six months.
Website and Mobile App Downtime
Aside from asking for receipts for credit card tracking, keep in mind that websites go down occasionally.
If you use your credit card when you don’t have access to your mobile app or online banking website, you may be spending money you can’t track until it’s up and running again.
This is why asking for your receipts will always be number one for credit card tracking and every other expense in your budget.
Don’t let asking for a receipt be awkward, as it’s not a very smart financial move for those wanting to increase wealth and lower debt.
Credit Card Interest Rates
Not everyone gets approved for the credit card they want, which means you might have a higher-than-expected annual interest rate.
I have a couple of suggestions: shop around for a lower-interest-rate credit card in Canada because you may have missed one that you will qualify for.
Related: Compare the best credit card rates in Canada
You can also see if your credit card company will allow you to consolidate high-interest credit cards with a balance transfer option.
Our PC World Elite Master Card offers a 0.97% interest rate for six months on any balance transfer options for new customers.
This is an opportunity to pay your credit card off in full so you don’t swim in debt for too long.
Credit Card Tracking On Holidays
Another thing to consider is if you plan on using your credit card when traveling out of the country, you still need to track your expenses.
It’s so easy to overspend when having fun on holidays, even if you think you’ve got a travel budget mapped out.
Many of us will only do so with the expense so that we will be away from home.
We found ourselves in that situation when we purchased a bucket and spade for our son in Spain so he could play at the beach.
Next time, we will pack some toys to bring because paying nearly $40 was shocking for something we could have bought at the dollar store.
But, in the heat of the moment when you are away from home, it’s so easy to say yes to plastic.
Another thing to consider is the foreign currency exchange on your credit card statement.
You must know what your credit card company will charge you, or your travel budget will be worthless.
Foreign Currency Conversion Charges
What are foreign currency conversion charges?
When a transaction in a foreign currency is posted to your Account, you will be charged a Foreign Currency Conversion Markup which is a percentage of the amount of the transaction that is charged for purchases and cash advances and deducted from refunds and credits.
The Foreign Currency Conversion Markup percentage is disclosed in your Disclosure Summary.
The Mastercard exchange rate and Foreign Currency Conversion Markup percentage are incorporated into the conversion rate and the Canadian dollar transaction amount shown on your statement. – PC MasterCard
You must check with your credit card company to see what rules they set for traveling and foreign currency before you travel.
Even though we are a hard-core budgeting family, it still happens to us because we’re human, which is why credit card tracking is essential.
No matter where we go, we always ask for our receipts, so have them handy to add to our credit card tracking sheet.
Don’t be shocked to hear that we brought our budget binder on our recent trip to the UK.
It was easy enough as it was not too big and allowed us to continue budgeting while traveling.
How To Start Credit Card Tracking
Almost all credit card companies have a mobile app that you can download if you own a mobile phone.
You can start credit card tracking from there, although most people won’t do this because it’s out of sight.
It is still a viable option for anyone wanting to know their credit card balance.
The other option is to log onto your credit card dashboard on your home computer to view a webpage designed for the credit card holder.
This option will allow you to do the same thing as using the mobile app.
What you have to look out for when relying on either one of the two options above is pending transactions, even though they may show in your current balance.
Navigating financial websites can sometimes be overwhelming, so the next best option is to track it yourself.
We created a simple credit card tracking sheet you can print and update in your budget binder.
You can also download it to your computer if that’s easier for you and update it as you would for your monthly Excel budget.
All you do is ask for your credit card receipt, take it home, input the expense, and manually add it up as you go along so you know what you’ve spent.
This option may suit people who don’t fancy trying to wiggle through credit card websites or mobile apps, but it can also be a backup plan.
Give Credit Card Tracking A Try
To summarize what we discussed today for Maura and everyone else, reading credit card tracking is essential to budgeting.
If your credit card bill is higher than expected or you struggle with paying in full each month, try credit card tracking for one month.
You may find that it helps ease some stress before the credit card bill arrives because you know exactly how much it will be.
Download your Free Budget Binder Credit Card Tracking Sheet Here!
Discussion: How do you make sure 100% that you are not overspending on your credit card each month? How do you handle going on holidays and using your credit card?
I’d love to read your comments, so be sure to leave them below.
We use a free app called “Spending Tracker” on our smart phone… well i do, my husband just reports his daily expenses to me (and he does not spend much). it has really changed how we look at spending… when you see the category at the end of each month, you really see where you can do better.
Hi Finny,
That’s great thanks for sharing your story. I find tracking has improved our finances so much over the years we wonder how we could manage without it.
I use my monthly account balance worksheet that I designed myself. I post each and every transaction daily – showing the increase in the credit credit card balance at the same time as I decrease the available funds in my account from whatever category is appropriate. When I have foreign currency transactions, I keep them bracketed within the itemized purchases until I have the conversion figure and can post the actual CDN $ cost to my records and remove the foreign currency figure.
Hi Mary,
That’s a smart idea with the foreign currency transactions since so many people tend to forget about what you see is not what you are paying in Canadian dollars.