How to Make Your Holiday Credit Card Spending Hassle-Free

The holidays are fast approaching and for most people, it also means shopping and spending. While shopping for gifts and new things can be fun, being stuck in bad debt is certainly a hassle. So how can you avoid bad debt this holiday season? How can you use your credit card without falling into bad debt? Check out these hassle-free spending tips:

credit card spending hassle freeDo not apply for new credit cards for holiday spending.

A lot of credit card companies take advantage of the holiday rush by offering exclusive discounts or gifts for new customers. Retail stores also offer loyalty credit cards with exclusive discounts to encourage more spending.

It can be tempting to sign up for one or two new cards even if you already have credit cards of your own. However, this can only lead to unnecessary purchases and will not help you in keeping spending in control. It’s best to stick with the credit card you have and plan the strategy to make sure that you can use it to your advantage.

Do not max out your credit card’s limit.

With so many gifts to buy and expenses to pay with your credit card, there is danger of maxing out or even exceeding your limit. This is a big mistake because you will not only have a more difficult time paying off your balances, your credit score will also suffer. Cardholders must be aware that 30% of your final credit score is based on credit utilization.

If you exceed your limit, you will incur over-the-limit fees. If you max out or exceed your limit, your credit score will be penalized. So even if your credit card carries a low rate, you should still keep your credit usage minimal. Ideally, you should not spend more than 30% of your available limit.

Seriously think about repayment.

Even if you’re using plastic credit cards to buy things, keep in mind that you will still be paying for your charges using real, hard-earned money. If you fail to pay your full balance on time, you will end up paying additional interest rate charges too, making your purchases more expensive than their original price.

Do you own a reward credit card? Then you should even be more careful since rewards cards typically carry APRs ranging from 15% to as high as 20%. Unless your reward credit card offers zero percent introductory rate, you should never leave a balance unpaid.

Do not charge all holiday expenses to your credit cards.

Many people own more than one credit card. Some people may reason that they can spread out their charges to their credit cards to avoid maxing out or exceeding their limit.

So instead of charging all expenses to your credit card, it’s a good idea to set a limit and use cash for other expenses as well. And if you don’t have enough cash, don’t charge it to your credit card just because it’s Christmas. While this can be a good idea, paying off your charges can prove to be a burden when the holidays are over.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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