Since the holiday season is starting up, people need to start planning out their purchases unless they want to accumulate a vast amount of debt that will prove to be both expensive and time-consuming to pay off. Fortunately, there are a number of methods that interested individuals can use to maximize their benefits and minimize their costs, including more than a few that are pertinent to their credit cards.
Here are five credit card moves to make before interested individuals start shopping for the holiday season:
Check the Credit Card Benefits
First and foremost, interested individuals need to check the benefits that their credit cards provide them. In part, this means looking at what kinds of purchases are incentivized the most by each credit card so that the credit card user knows which credit cards to use for which purchases. However, it is important to note that credit cards can come with a wide range of other features that can prove useful for holiday shopping, with examples ranging from price protection to return protection. Of course, these features should be factored into the choice of credit cards for the purchasing process as well, though how they compare to other credit card benefits is something that will see significant variation from person to person.
Look Up Other Options
However, the credit cards that a particular credit card user has at the moment might not be the credit cards that are best-suited for their particular needs and circumstances when it comes to holiday shopping. As a result, they should start checking with credit card issuers to see what else is available to them. The more time and effort that they are willing to put into the search for the right credit card, the better their chances to finding something that will be perfect for their particular shopping preferences.
Consider Getting a Cash Back Credit Card
One of the most popular options for a new credit card when it comes to holiday shopping is a cash back credit card. After all, cash back credit cards return a small percentage of the cost of their purchases to them, which can seem unimportant but can build up to a significant sum over a sufficient period of time. Considering the sheer number of purchases that people make during the holiday season, there is no better time to start making use of a cash back credit card, particularly if it comes with additional bonuses for the right retailers to make them even more useful for a holiday shopper.
Consider Getting a Store Credit Card
For people who prefer to concentrate their holiday shopping at particular retailers, it might be worth it for them to look into store credit cards. Generally speaking, store credit cards tend to offer exceptional bonuses for shopping at said stores, but the problem is that they tend not to be worth it when shopping elsewhere, which is why looking into the exact details of their offers is so important. Speaking of which, it is not uncommon for consumers to be asked about signing up for store credit cards when they shop at said stores, but if so, they should never accept right away. After all, a fully informed decision ensures the best outcomes when it comes to financial matters, meaning that consumers should never make snap decisions on the spot unless they are willing to take chances with their financial well-being.
Consider Low-Interest Offer
A lot of credit cards offer periods of low interest or even no interest to new customers. As a result, people who are planning to accumulate a large amount of credit card debt might want to get one of these credit cards, which should make their credit card debt burden that much more manageable when it comes to the actual repayment. However, interested individuals need to pay close attention to the duration of these special offers because once they expire, their interest rates and thus the cost of their credit card debt will go up. Theoretically, a credit card with an introductory offer for low balance transfer interest rates can serve a similar function, but since most examples come with balance transfer fees, this means an introductory offer for low interest rates tend to be the superior option. Still, consumers should not make assumptions, meaning that they should always check to make sure that their expectations are in line with the reality of things.