How To Use A Credit Card Wisely, Especially While Holiday Shopping
When shopping, it’s smart to budget, keep track of how much you spend, and avoid spending money you don’t have. When shopping with a credit card specifically, there are some additional things to keep in mind.
STICK TO A BUDGET
When shopping, it’s always wise to create a budget to avoid overspending. Start by making a list of who you’re going to buy presents for, then consider what kind of gifts you’re going to buy. Just because you have a certain credit limit doesn’t mean you have to meet that limit, especially if you don’t have the money to pay it back.
Budgeting can help you use a credit card wisely. Some credit cards offer cash back when you shop at certain stores, so make sure you know all the benefits your credit card offers to make the most of your shopping.
PAY OFF YOUR CARD IMMEDIATELY
The best way to use a credit card is to only buy what you can afford with it. Take away the stress of remembering to pay off your credit card by paying off your card immediately. By doing so, you can avoid debt and interest.
AVOID STORE CREDIT CARDS
You know the drill — when you walk up to the counter to check out at your favorite store, the cashier is going to ask you if you want to sign up for a store credit card. It might seem like a good idea at the moment to get a credit card at a store that you shop at frequently, but these credit cards often have very high interest rates. They also often have low credit limits, anyway. And, if you sign up for multiple store credit cards, leaving you with many cards in your name, it can hurt your credit.
Even one month of carrying over a balance can cause you to accumulate debt. To wisely use a credit card, first, you need a credit card that won’t be easy to misuse. Avoid the temptation and future debt when holiday shopping.
SHOP WITH A CREDIT CARD THAT OFFERS REWARDS
You’re going to spend money, so why not earn rewards at the same time? Shop smart and make the most of your spending by earning rewards through INOVA Federal. During INOVA’s “You Gift We Gift” promotion in November and December, you can earn extra reward points on debit card purchases and a special rate on credit card purchases.
Rewards points can be redeemed for cash back, statement credit, and Visa Prepaid Cards.
Learn more about what credit cards are available to you as a member of INOVA Federal Credit Union online or by stopping into one of our convenient locations.