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The costliest time of year is usually the holiday season. Many individuals end up spending a lot more money than they intended to over the holidays on anything from gifts to travel to an endless stream of parties (some of which you may be required to host). As a result, they run the risk of sliding into debt. In light of this, here are some suggestions for managing your credit cards over the holiday season while also maximizing the benefits they provide.
1. Compile a weekly spending report.
During the holidays, your credit card usage may increase by two or three times, especially if you have a lot of things to buy. Checking the balances on your credit cards once a week is a wonderful idea because of this. You can take efforts to reduce spending or alter your gift-giving technique if those numbers rise uncomfortably so that you don’t find yourself in debt.
2. Be mindful of the shifting reward categories
On specific retail store purchases made during the fourth quarter of the year, several credit cards provide additional cash back. Pay attention to those revolving categories if you anticipate doing a lot of holiday shopping so you can use the appropriate cards when necessary.
3. Before starting your holiday shopping, sign up for a credit card with a sign-up bonus.
Many credit cards offer sign-up bonuses that can net you a ton of money if you hit a specified spending threshold within a predetermined time frame. For instance, you can be qualified for a promotion that gives you $200 after spending $2,000 in the first three months after opening your card. See what offers are out there by doing some research. The holidays are a wonderful time to pursue sign-up incentives because that’s when your spending may increase.
4. Be aware of the interest rates applied by each of your cards.
It would be nice to finish the holiday season debt-free. But it’s possible that’s not the boat you land in. Pay attention to the interest rates your various credit cards have if you want to accumulate credit card debt throughout your Christmas shopping. A card with a 16% interest rate is preferable to one with a 20% interest rate if you plan to carry a balance on it.
5. Pick the best card while booking your trip.
In the end, a lot of people travel over the holidays. If you’re going to do the same, it’s a good idea to utilize a travel rewards card, or if you don’t already have one, get one right away. These cards frequently come bundled with benefits like free checked bags for domestic flights and reductions on in-flight purchases that can help you save money on vacation.
It can be overwhelming how much money you wind up spending over the holidays. Use these suggestions to avoid running up too much debt on your credit card balances and to make the most of the cards you do wind up using.
