This is the season for giving gifts, travelling to grandma’s house, and hosting parties. With credit cards, you can clear these extra holiday-related expenses. However, you could begin the new year saddled with debts if you aren’t careful. Here’s a quick guide on how to use your credit card wisely during the Christmas season.
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Don’t go Overboard on Gifts
Before shopping, make a list of people you need to give gifts to. Good money management habits suggest you don’t spend what you can’t afford.
Even if you have the money to spend in your account, it’s not wise to go all in on Christmas gifts. You should consider setting a Christmas spending limit and using your credit card to take advantage of those lower-cost gifts.
When shopping Christmas gifts don’t forget to check Amazon. On the online marketplace, you’ll find amazing presents and gifts.
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Use Your Credit Card as You Would Use Cash or Debit Card
The key to low-risk and proper use of credit cards this Christmas season is to treat it as cash or a debit card. While giving out lots of gifts, eating expensive meals, and hosting a great party is great, having a debt hangover isn’t a great way to begin a new year.
If you spend within your means but buy items using your credit card, you’ll still get reward points while sticking to your budget. Being able to stick to a healthy spending budget this Christmas will usher into a new year with no carry-over debts.
Take Advantage of Boxing Day Sales to Get Your Bonus Points
Boxing Day sales could be a game-changer and a good use of your credit card this Christmas season. Many credit card issuers give bonus points for spending a certain amount within a few months of opening your card.
If you have just received a new credit card between November and December, you could benefit from Boxing Day sales. However, that’s not to say that you should spend more than you can afford to get bonus points.
The idea here is to take advantage of Boxing Day to stock up on essential items you’ll need next year while meeting your credit card’s requirements to receive bonus points.
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Watch Out for Credit Card Fraudulent Activities
Besides consumer spending, credit card frauds also jump during the Christmas season. Constantly monitor your credit card statements to monitor how much you’re spending and to watch out for unauthorized charges.
A report from ACI Worldwide, a payment systems company, shows that global cross-channel fraud increased by 13%. The Christmas season can be a risky time when it comes to credit card fraud and identity theft.
Hackers know that people spend more during the Christmas period. So, they’re out looking for who to prey on. While most credit card issuers have fraud monitoring tools, they might not notify you of every instance of fraud.
If you don’t recognize a charge, check your receipt to make sure it’s yours. However, if it doesn’t belong to you, quickly contact your credit card company to report the situation. Check these guides on Amazon to learn more ways to protect yourself from credit card fraud and identity theft.
Credit Card Limit Shouldn’t Serve as Your Spending Guideline
Maxing out your credit card can be tempting, but doing so can be a problem. First, you need to remember that your credit card limit doesn’t represent the amount you can afford to pay off. Secondly, maxing out your credit card can also impact your credit score negatively.
As tempting as it may be to enjoy life and shower your family and friends with expensive gifts, try not to spend more than you can afford. This will help ensure that you don’t move into the coming year with hangover debts.
When shopping for Christmas, simply follow the five tips on how to use your credit card wisely during this festive period. For convenience, quality, and fair pricing, you can shop for your Christmas gifts and items on Amazon.
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