The holiday season is here, and shoppers are heading out in full force to grab up the deals on everything that comes their way. According to many people, the holiday season is meant for spending big and for some; this is the perfect time to utilize their credit cards to pay for all items that appear on their shopping lists. Although it may seem great and exciting, it’s easy to get into trouble if you’re using your credit card carelessly.
Whether you’re shopping from the comfort of your house or walking into merchants; store, below are the top five credit card mistakes you should avoid this festive season.
Taking Out a Cash Advance
In some rare cases, stores won’t accept your credit card as a form of payment. If you’re going to purchase anything from such a store, then you should only withdraw the cash from your bank account using your debit card and avoid taking out a cash advance from your credit card. The problem with cash advances is that they tend to have extremely high APR and come with an extra fee. The best way to avoid such is using your debit cards in stores that don’t accept credit cards.
Shopping Online at Unsecured Websites
Although online shopping is a great experience, you need to make sure that the URL of the website you’re visiting is secure to avoid leaking your credit card information to fraudsters. If you can’t stick to the big-name retailers and online stores that you can trust, always confirm the web address of the website before filling in your credit card information. Secure sites always have an “s” after htttp so the URL of a secure website will always start with “https.”
Spending Beyond Your Means
Many people usually don’t adhere to the concept of bot spending beyond your means, especially during the festive season. They typically believe that they can spend today and worry about the payments later while some tend to overestimate what they can afford. While you want to give everyone around you a happy holiday, try to do so within your means. Develop a habit of using a credit card payoff calculator to determine a reasonable amount of money you can spend on your card.
Running Your Credit card up to the Limit
Don’t think that the amount of debt you owe won’t affect your credit score. If you’re the type of person who carries high balances across multiple cards, then be sure that soon you will have a poor credit score. Lenders are always aware of people are close to their total credit limit and will use this as grounds for denying you a loan in future. Creditors may also be forced to raise your interest rate based on your perceived level of risk.
Forgetting to Track What You Charge
The holiday season is characterized by numerous parties and spending time with family and friends. This beehive of activities can easily make you forget to track your expenditure. You will be surprised at how much you’ve been charged when the credit card statement finally arrives. To be on the safe side, always organize all your receipts and keep an updated tally of what you’ve spent on each you’re using to eliminate any chances of being caught off-guard.
Get a Short-Term Holiday Loan to Enjoy Your Festive Season
You can get a short-term holiday loan at a competitive interest rate to buy gifts and spend during this festive season. A short-term loan is a good option for you since there’s no need for collateral and you get flexible repayment period of up to 90 days. The loan is processed in a few hours allowing you to quickly and efficiently access the money.