Credit card management apps can help you stay on top of your credit card balances, payment dates, and rewards. But as with most things in life, there can be pros and cons to using these apps.
Here, you’ll learn about the ins and outs of a credit card management app, plus some general tips to managing your credit cards.
What Is a Credit Card Management App?
A credit card management app can help you manage multiple credit cards that are in your rotation. You can think of the different credit card management apps falling into different categories.
• The first group of credit card management apps is designed to track credit cards and help you stay on top of payments. Common features include tracking your credit utilization, payment due dates, payments, and remaining balance, and helping you stay on the path to repaying your credit card debt.
• The next type is a money management app or debt tracker app. Both sync up to your credit cards and track recent credit card transactions, minimum payments due, and payment due dates. Some money management apps offer free credit score and credit monitoring. In turn, you can save time and stress wading through credit card statements.
• There are also credit card management apps to keep track of your credit card rewards and travel points.
As you review different credit card management apps, some of the ones you may see are Tally, AwardWallet, and Debt Payoff Planner.
Many credit card management apps are free, though some have a monthly subscription fee. Prices for the programs that do require payment (and may come with extra features) can be about $30 per year, though costs run from $2 to $12 a month. Often, you can receive a discount for paying annually versus monthly.
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Common Features of Credit Card Management Apps
Here are some common features of credit card management apps:
• Syncs to your credit card accounts. By linking your credit card accounts to the app, you can track transactions, such as recent purchases and refunds. Plus, you can see when your payments were posted.
• Tracks your payment due dates. Many money management apps enable you to monitor when your payments are due. This might be a calendar view or a list of all your payment due dates and amounts.
• Credit score and monitoring. Some money management apps offer free credit scores and credit monitoring, alerting you of when your score goes up or down. These alerts and checking your credit score regularly can help you pinpoint financial habits and patterns that might be impacting your score.
• View credit card balances. A credit card management app can show not only your credit card balances but also the interest rates and credit utilization, which is how much balance you’re using against all your cards. It can also indicate how much of your credit limit you have remaining.
• Tracks credit card points and travel rewards. Apps that track credit cards specifically can help you make the most of your credit card rewards. There are apps that also help you maximize your rewards points earnings on every card.
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Benefits of Credit Card Management Apps
Here are the perks of adding a credit card management app to your toolkit.
• Keeps you organized. You don’t have to muddle through a pile of credit card and bank statements to make heads or tails of when your payments are due and what purchases you put on your cards.
• Makes it easier to keep track of credit usage. By using a single app, you won’t have to log on to all your different credit cards to see which purchases you’re putting on your cards, how much you owe on your balances, and your credit utilization, which is how much you’ve used of the credit limit on all your cards.
• Helps pay off credit card debt quicker. Some credit card apps have handy features to help you knock down debt at a much speedier pace. For instance, the app might detect “extra funds” you have in a given month. That’s money you can put toward one of your outstanding balances.
• Helps avoid falling behind on payments. With due dates and reminders to set on your app, you won’t be scrambling to remember when you need to pay off each credit card bill. In turn, you’ll have an easier time staying on track. Plus, you can consider setting up automated credit card payments.
Reasons to Use a Credit Card Management App
Here are a few reasons why you might want to consider linking up your credit card accounts to a credit card management app.
• Tracking your transaction history at a glance. Instead of muddling through a stack of credit card and bank statements, you can see your recent purchases through a credit card management app.
• Understanding your financial behaviors better. You can gain a better understanding of your spending habits (such as impulse buying) and how much credit card debt you owe at a given time.
• Organizing your credit card account. You can stay organized with the payment schedule and the minimum payment amounts.
• Managing debt. Some credit card management apps include debt tracker tools to help you monitor your progress on your different cards.
• Optimizing credit card rewards. Credit card management apps might help you find ways to maximize your credit card rewards. You can calculate your rewards, stay on top of deals and offers, and integrate loyalty programs.
The Takeaway
A credit card management app can help you keep tabs on your credit cards without having to log in to multiple credit card apps or maintain a complicated spreadsheet. These apps can optimize your ability to stay on top of payments, monitor your credit usage, and make the most of a card’s rewards and perks.
Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.
FAQ
What is the app that combines all your credit cards?
There are a couple of apps that help you monitor all your credit cards and track your outstanding balances and credit usage. Some say their goal is to help lower your credit card payments and manage your debt.
Is it safe to have a credit card app on your phone?
It is generally safe to have a credit card app on your phone. Credit cards on mobile phones have the same fraud protection as online or in-store purchases. Your liability is capped at $50 for unauthorized transactions. Plus, thieves and fraudsters won’t be able to get their hands on your physical card and skim or steal it.
How do I manage all my credit cards in one place?
Using a credit card management app may help you stay on top of your credit card activity in one place. There are different kinds of such apps, which have varying features and tools, from rewards tracking to debt payoff strategies.
Photo credit: iStock/Mindful Media
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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