Another holiday shopping season is underway, and this year, consumers are expected to spend $902 per person on average for gifts, food, decorations and other seasonal items.
When you use a credit card for holiday shopping, you have the flexibility to spread out these purchases without straining your budget all at once. Plus, credit cards can come with perks such as enhanced fraud protection and rewards points on purchases.
However, it's important to use credit cards responsibly to avoid overspending and creating debt. By following a few key dos and don'ts, you can make the most of holiday shopping with a credit card:
DO Use Credit Cards for Enhanced Fraud ProtectionAs holiday shopping ramps up, so do fraud attempts. A credit card provides greater fraud protection compared to a debit card, making it a more secure option, especially for online purchases. Best of all, Wright-Patt Credit Union®'s (WPCU®) credit cards come with Visa® Zero Liability Policy*, which protects you from unauthorized charges.DON'T Impulsively Sign Up for a Retail Credit Card at CheckoutIt can be tempting to sign up for a store credit card during the holidays, especially if the retailer offers you special discounts at the register. But be careful — these credit cards often carry higher interest rates. If you're unable to pay off your balance in full each month, that initial “discount" could end up costing you much more in interest long after the holidays are over.DO Make the Most of Rewards PointsIf you have a cash-back rewards credit card, like the WPCU Platinum Rewards Card, the holidays can be a great opportunity to earn rewards points on the shopping you're already doing. With our new and enhanced rewards program, Lifestyle Rewards, it's easy to access and redeem the points you've earned for everything from gas to groceries to travel and more!DON'T Forget to Track Your SpendingHoliday purchases can snowball faster than you expect, and if you aren't keeping track, it can be easy to accidentally overspend. To avoid credit card debt and financial strain in the new year, be sure to set a budget for holiday shopping and track every purchase closely.An easy place to start is by monitoring your transactions on WPCU's Mobile or Online Banking. Keeping a close eye on your spending will also help you spot fraud attempts so you aren't taken by surprise.
As holiday shopping ramps up, so do fraud attempts. A credit card provides greater fraud protection compared to a debit card, making it a more secure option, especially for online purchases. Best of all, Wright-Patt Credit Union®'s (WPCU®) credit cards come with Visa® Zero Liability Policy*, which protects you from unauthorized charges.
It can be tempting to sign up for a store credit card during the holidays, especially if the retailer offers you special discounts at the register. But be careful — these credit cards often carry higher interest rates. If you're unable to pay off your balance in full each month, that initial “discount" could end up costing you much more in interest long after the holidays are over.
If you have a cash-back rewards credit card, like the WPCU Platinum Rewards Card, the holidays can be a great opportunity to earn rewards points on the shopping you're already doing. With our new and enhanced rewards program, Lifestyle Rewards, it's easy to access and redeem the points you've earned for everything from gas to groceries to travel and more!
Holiday purchases can snowball faster than you expect, and if you aren't keeping track, it can be easy to accidentally overspend. To avoid credit card debt and financial strain in the new year, be sure to set a budget for holiday shopping and track every purchase closely.
An easy place to start is by monitoring your transactions on WPCU's Mobile or Online Banking. Keeping a close eye on your spending will also help you spot fraud attempts so you aren't taken by surprise.
When used responsibly, a credit card can be a smart way to cover holiday expenses. Whether you're looking for a low interest rate credit card or cash back rewards on everyday purchases, WPCU has a variety of credit card options to fit your needs!
Looking for more tips to help you spend wisely this holiday season? We're with you! Visit our Education Center for helpful resources including budgeting worksheets, financial calculators, interactive learning modules and more.
*VISA ZERO LIABILITY POLICY. This policy protects you from unauthorized charges if your card is lost or stolen. However, you should always use care in protecting your Card. You must notify us immediately and assist us in our investigation if your card is lost or stolen, or if you believe someone is using your card without your permission. Visa’s Zero Liability Policy does not apply to certain commercial cards, anonymous prepaid card transactions, or transactions not processed by Visa.