Holiday Credit Card Tips 

The holidays can be one of the most expensive times of the year. Because of rising expenses, many people plan to put everything on a Christmas credit card. Credit cards can be a great way to get access to financing for the holidays, but if you get the wrong card or don’t understand how interest rates and rewards work, it could end up hurting you financially. 

At Arkansas Federal Credit Union, we offer both low-rate and cash-back credit cards for the holidays. Our low-rate credit card has one of the lowest rates in the country, and our cash-back credit card lets you earn 2% back on every dollar you spend, while also having a low interest rate. Neither card has an annual fee, which makes them two of the best credit cards for the holidays. Contact Arkansas Federal today to learn more about how we can help you get the best holiday credit card this year.  

Holiday Credit Card Recommendations

For the sake of your credit and your budget, it’s important to choose the best credit card for the holidays. These holiday credit card tips can help you find the best card for you and use it to save money this holiday season.

Take Advantage of Low Interest Rates

If you’re planning to pay off your credit card over time, choose a credit card for Christmas shopping that has a low interest rate. Arkansas Federal offers an everyday low-rate credit card that can help keep interest costs down on your holiday purchases. With a lower interest rate, you’ll pay less in interest over time.

Explore 0% Introductory Rates

An introductory rate could help you save, too. Some credit cards offer 0% APR on purchases for a set period, giving you time to spread out payments on holiday purchases without paying interest during that time. As you compare options, explore Arkansas Federal’s low-rate credit card, which combines a low ongoing rate with promotional offers when available. Be sure to review how long any introductory rate lasts, which purchases qualify, and what APR applies afterward.

Take Advantage of Credit Card Rewards

Rewards credit cards and holiday spending are other ways to take advantage of using credit cards for the holidays. At Arkansas Federal, our cash-back credit card allows you to earn 2% cash back on every purchase. You can use your cash-back card to help pay for your purchases, or you can save your holiday rewards and redeem them for something else. While this is a great option for a holiday rewards card, it is also available year-round.

Monitor Your Card Charges For Fraud

Unfortunately, because of the increase in shopping, fraud tends to increase during the holidays. It’s a good idea to check your credit card transactions regularly to make sure you don’t have any fraudulent charges and can catch any suspicious activity early. With Arkansas Federal credit cards, you’re protected by $0 fraud liability, meaning you won’t be held responsible for any unauthorized charges. 

Manage Payments To Keep Interest and Fees Low 

When possible, it’s best to pay more than the minimum amount on your credit card balance to lower the total interest you owe and shorten your repayment period. If you have multiple credit card balances, transferring them to lower-interest credit cards can help you consolidate your payments, lower your overall interest, and pay off your balance faster. 

Even if you can’t make the whole payment, make sure you make the minimum payment on time, since late or missed payments can add extra fees and hurt your credit. 

Another tip for managing Christmas credit card spending is to make payments throughout the month instead of waiting for your statement. This helps keep your credit utilization low, which can improve your credit score and help prevent going into unnecessary holiday debt. 

Watch Out For Predatory Retail Credit Cards

During the holidays, many stores promote their own credit cards with credit card Christmas deals. While it can seem like a great way to save money on your purchase, most retail credit cards come with extremely high interest rates. If you’re planning on carrying a Christmas credit balance, those interest charges can quickly outweigh any savings you received from the sign-up promotion. If you are considering a retail credit card, make sure you consider the interest, any fees, and how often you’ll use the credit card outside of the holiday season.

Limit How Many Credit Cards You Apply For

If you are applying for multiple credit cards, be aware that applying for a credit card requires a credit check, and that multiple credit checks in a short period of time can hurt your credit score. Instead of opening multiple new accounts, it’s recommended to stick to a single credit card with a low interest rate and rewards. 

Avoid Using Public Wifi for Purchases

If you can avoid it, it’s a good idea to refrain from making online purchases while using public WiFi, since it isn’t always secure. When in public, it’s a better idea to use data or a hotspot when entering any personal financial information to make sure that the information is protected from potential hackers.

Don’t Max Out Your Credit Cards

Reaching your credit limits can be viewed as using too much credit and can hurt your credit score. The general rule of thumb is to only use 30% or less of your available credit to keep your balances low.

If you’re worried about overspending, you may be able to set up your accounts to send you alerts if you’re too close to your spending limits. Using only one credit card for all your holiday shopping is the easiest way to keep track of all your transactions. 

Apply For Your Holiday Credit Card Today

If you’re already planning to put your holiday spending on a credit card, it makes sense to use a credit card that can help you save money as you make purchases. With a low-rate card, you can save as you pay off your credit card balance by paying less in interest, and cash-back credit cards help you earn savings as you use your card.

Apply for your holiday credit card from Arkansas Federal today to get access to affordable financing for your holiday spending.