With the holiday shopping season coming up, as well as Black Friday on the 25th November, it is important that you make careful decisions as to how you plan to spend your money.
This article will outline some do’s and don’t’s to consider when buying gifts for family members and friends.
Credit Card Do’s for Holiday Shopping
Make the Most of Your Credit Card Rewards and Benefits
A number of credit card companies will offer their customers additional rewards or benefits when they spend on certain categories or with certain store chains. It is worth checking whether any of the stores mentioned on your current card benefits stock the holiday gifts that you are playing on buying, as this can help you to save on your spending.
If you are travelling during the holiday season, then it may be worth booking the travel expenses such as flights and accommodation on a travel rewards credit card, or even a cash back credit card.
Make Use of Credit Card Introduction Bonuses
A number of credit card companies will try to entice new customers with generous rewards and discount offerings, especially in the lead up to the holiday season. Getting a credit card that comes with an introduction bonus may allow you to make a significant amount of cash back on your holiday spending.
Use a Credit Card to Track Your Spending Budget
It is important to try and stick to a set holiday spending budget, as this helps to prevent impulse buys or spending more than you are able to afford. Credit card transactions can be easily accessed online or via app, allowing you to track your spending which can then help you to stick to your budget.
Make Sure to Pay Off Your Credit Card Bills
It is important that you pay off your credit card bills in full and on time. By doing so, this can help to ensure that you are not paying any interest or late payment fees on top of what you have spent.
Protect Your Credit Card Purchases
Many credit card companies will offer their customers additional purchase protection or extended warranty coverage on certain products. For example, if you buy a gift that becomes faulty after the manufacturer’s warranty period, your credit card provider may cover it beyond the expiration date. Credit card purchase protection can further help if your purchases have been stolen or damaged.
Credit Card Don’t’s for Holiday Shopping
Do Not Spend More Than Your Credit Limit, or More Than What You Can Afford
Spending and purchases can add up quickly when using a credit card, which can lead to individuals spending more than they actually have and ending up in debt and with a poor credit score. Instead, it is important to ensure that when you are using a credit card during the holiday season, you are staying within your budget and paying off the bills in full and on time.
Do Not Forget to Pay Your Credit Card Bill
It is extremely important to try to remember to pay off your credit card bill in full and on time. This will help to avoid any excess interest or late payment fees, as well as lowering your credit score.
Do Not Lose Track of Your Holiday Spending
It is important to track exactly how much you are spending during the gifting season. This could involve making use of your online banking or credit card apps. You could even make your own spreadsheet that could be used to check your credit card spending to ensure that it is remaining within limit.