Many people use credit card purchases during the holidays. They can help spread out payments for gifts, and rewards cards can provide substantial benefits by the time everyone’s gift is purchased.
If you’re going to use credit cards for holiday gift shopping, you should definitely know how to do so wisely. Follow these best credit card practices ahead of the holidays, so the cards are a net benefit and don’t bring you negative consequences.
Make Sure You Can Pay the Balance Off
While credit cards can help you spread holiday gift costs some, you don’t want to string these payments out indefinitely. Make sure you can pay off whatever you spend on gifts, preferably before interest is charged.
Budget your gift purchases so that you know how much you can spend. Consider any savings, salary/wages, and bonuses that you’ll receive, and can devote to gift giving. You might be able to count salaries received in early January, depending on your credit card payment cycle. Keep in mind that many people receive at least small holiday bonuses.
Consider a 0% APR Introductory Offer
Most credit cards will give you about 30 days to pay off purchases without interest, which may extend your timeframe into January. Some cards come with 0% APR introductory offers that don’t charge interest for three months, six months, or longer.
If you want to spread payments out for a longer period, consider applying for a credit card with a 0% APR offer. Just make sure you can pay off your purchases within the offer period, and that your extended payments won’t prevent you from taking a summer vacation or other fun activities that you do.
Ask for a Limit Increase
If you’re using credit cards solely for the rewards, you might be able to eke out a few more rewards by asking for a credit increase. You should already be making on-time payments if you’re in this situation. You also hopefully have no balance.
For customers who meet these conditions, many credit card companies will provide nominal limit increases. A 10% request might be good, as it’s reasonably likely to be granted and should help cover holiday spending.
Get Help With Existing Credit Card Debt
If you’re already struggling with credit card debt, don’t make it worse by overspending these holidays. Get help managing your existing debt and finding financial freedom in the future. For this holiday season, there are lots of inexpensive and DIY gifts that people will cherish.
For help managing credit card debt, contact us at KeyCreditRepair.com. We can assist with a wide range of credit card problems. Get in touch now for a free consultation before you’re too busy with the holidays!