With the holiday season upon us, you’ve probably been thinking about how to celebrate with your friends and family this year. If you’re like us, that usually means online shopping sprees and big (but safe!) family dinners. Credit cards can be your best friend during the holidays, and we’ve come up with some great tips on how to best use them.
Tip #1: Know where you’re spending
Create a list of planned activities such as family gatherings, friend’s birthday parties, or movie nights. Next, prepare a list of gifts you’re giving to people. It’s OK if these change over time; by writing everything down you will have a much better idea of where you will be spending. For example, you might be having fewer parties this year but plan to buy a new TV for your favorite auntie (don’t forget your uncle though!)
Tip #2: Create a budget
Once you have these lists, you are ready to create a budget. We suggest that you figure out how much you will be spending on each item on the list and write those numbers down too. We also recommend checking your bank account and your credit card limit to make sure you won’t be overspending.
Tip #3: Choose the right credit card
If you will be carrying a balance after the holidays, you can consider applying for a credit card with a 0% introductory APR. This will help you save a lot of money on interest as you make your credit card payments. Another good strategy is to choose a credit card that gives you the best rewards for your spending. For example, if you plan to buy gifts online, there are credit cards that give you extra cash back or points from places such as Walmart.
Best Cards with 0% Introductory APR:
- Bank of America® Cash Rewards
- Chase Freedom Unlimited® Card
Best Rewards Cards:
- Discover It® Cash Back Card
- Capital One® Walmart Rewards® Card