Here are a few tips that will help you use your credit card judiciously during the holiday season and avoiding getting you under extra debt.
Do not open up extra new credit cards just make the purchases. If you are going to use credit cards to make purchases for the holiday season or not open new credit cards just to make extra purchases all to avail the discount at a few departmental stores. Making extra credit card applications results in Inquiries’s on your credit report which might harm your credit score. Getting extra credit cards may result in you spending more than originally planned and with a credit card debt that might take you months to pay off with extra interest that increases the cost of shopping manyfold.
Although you may need that extra money to shop for your holidays keep your credit card under the credit limit. Try to stay may need the 30% mark on your credit card. Since it is the holiday time you can extend your credit limit to to 50 to 60% provided that you bring the balance down with the next payment that you make on the credit card. Maxing out your credit card increases the credit utilisation ratio which is bad for your credit score. If you’re maxing out your credit cards may be should stop for a moment to think that you might be spending more than necessary on purchases.
Do not carry each and every credit card that you possess to shop. Try and limit your holiday shopping to 2 to 3 credit cards. Carrying more credit cards just because you think that you might need them is most likely to result in a situation where you do indeed accusing the extra credit cards resulting in more expense and more debt which you might regret later. Remove the temptation of shopping for extra and and need items by carrying a limited amount of credit cards.
Shopping on credit can seem like a breeze because you to not have to a instantly fought what you buy. Shopping on credit can quickly make use track of how much you are spending. Do not let this happens you. Do not shop for extra items just because you are using your credit card. Plan in advance how much you’re going to spend and gifts that you need to buy. Stick to the plan once you are in the store.
Do not use credit cards to supplement cash. If you feel that you cannot afford a certain purchased and do not have enough money, do not rely on your credit cards to make up for the cash shortage. You will have to pay the balance on your credit card eventually. If you cannot afford a certain purchased today the odds are that you will not be afford to pay for it 15 to 20 days later when the credit card Bill arrives. Revolving a balance on your credit card will result in you having to pay finance charges which will increase the burden of debt.
Try and pay off the balance that you have charged on your credit card during the holiday shopping as quickly as possible. By taking a long time to pay off the balance of the holiday shopping will result in you paying a lot more as interest charges and financial charges. Having to pay extra you to revolving the credit from one month to another will increase the cost of original shopping manyfold. Try and charge what you can afford to pay off completely in the next one or two billing cycles of your credit card.