Do's and Don'ts for Credit Card Use
The holidays are here to bring joy and festive times with friends and family – and spending. Lots and lots of spending. If you are like most of our members, that frequently means shopping with a credit card. After all, credit cards make it easy to purchase gifts, food, décor and much more, whether in-store or online. Using credit cards for purchases can help you earn rewards and take advantage of extra protections available with your card. It can also be an affordable way to manage the extra expenses of the season.
However, there are right ways and wrong ways to approach holiday shopping with credit cards. We have the do’s and don’ts to keep in mind all season long
Do Take Advantage of 0% Offers and Rewards
Embarking upon the holiday season with a 0% Annual Percentage Rate credit card is a great way to ensure your holiday purchases won’t rack up lots of interest charges this season. Plus, if the credit card earns rewards, you will be able to redeem those rewards after the holidays to offset some of your holiday spending.
Do Make a List (and a Budget)
Even if you’ve already started making your holiday purchases, it’s never too late to make a holiday list and budget. This step can help you manage and track spending throughout the season to help you reduce the chance of overspending or taking on too much holiday debt. To get started, list out all your holiday expenses, such as gifts, shipping, food, décor, travel, entertainment, tips and more. For each category, list out specific items you have purchased or plan to purchase as well as their costs. Decide how much you can spend and make adjustments where needed.
Do Pay Bills on Time
Once the holidays are over, the bills start coming. If you held to your budget, you will be well prepared for this step. Even though those hefty holiday bills are no fun to pay, making your payments on time does have an upside: it can help you build credit. Paying your bills on time helps creditors see that you can manage debt well, so be sure to pay make all your payments on time. Setting up automatic payments can help, as can establishing balance alerts on your checking accounts to help you ensure you have the funds to make your payments. If possible, make more than the minimum payment to help you pay off your holiday debt faster and reduce the overall interest you will pay.
Do Redeem Your Rewards
Now that your holiday purchases have earned you plenty of rewards, be sure to redeem those rewards. Whether you redeem rewards as a statement credit to help pay down your holiday debt or to purchase other things you want or need, your rewards points can help you offset some of your holiday spending and make paying your post-holiday bills easier.
Don't Blow Your Budget
It isn’t enough to simply make a budget. For it to be effective, you must manage spending, using your budget to help you along the way. Going over your budget can create a serious financial strain and even leave you with debt that could take years to pay down. Instead, as you make purchases, reference your holiday budget and keep it updated. Be as complete as possible. If you realize you have overspent in any budget category, make adjustments to others to help keep you from blowing your overall budget.
Don't Store Credit Card Numbers Online
Keeping your credit card information stored on retailers’ websites may make purchases fast and easy, but it also presents security risks. If the website where your card information is stored is breached, hackers may access your credit which can be used to steal your identity. While entering your credit card information each time you make a purchase takes a little extra work, it is a lot safer.
Don’t Shop on Unsecured Networks
While you are out and about through the holiday season, it may be tempting to get some of your shopping done online while sitting in a café. However, making purchases while using an unsecured or public Wi-Fi network can put your personal and credit card information at risk. Feel free to browse online stores and even add things to your cart, but stay logged out and don’t complete your purchases until you are on a secure network.
For more information about APCU/Center Parc’s credit cards, visit our website, where you can apply online for the card that fits you best.
