The Holiday Shopping Season is here! Although credit cards are a great tool to build credit, it’s easy to overspend during the holidays. Set yourself up for financial success with these Holiday Credit Card Tips!

Determine Your Budget

 Carrying high balances on your credit card may reduce your credit score. Your credit utilization ratio (how much of your available credit you’re using) plays an essential role in determining your credit score. To avoid maxing out your credit cards and better track your spending, check out our blog, “Home Budgeting Tips.”

Be Wary of Store Cards

 As tempting as it may be, be cautious of applying to store credit cards. Many store credit cards have higher interest rates than regular cards. Additionally, every time you apply for a credit card, a financial institution makes a credit inquiry to determine your eligibility. Check out our blog “How to Increase Your Credit Score” to learn more!

Don’t Ignore Your Statements

Resist the temptation to deal with your credit card balance until after the New Year! Set yourself up for financial success in the next year by reviewing your statements for accuracy. Pay off as much of your balance as you can reasonably afford based on your monthly income and expenses. Quickly pay off your credit card so you accrue less interest on your purchases.

Only Spend What You Can Afford

According to CNBC, when you pay with a credit card, it’s easier to spend more than if you pay with cash since you’re not handing over any physical money. Try setting boundaries for yourself by setting up spending limits and checking your balance daily.

Redeem Your Rewards

Many credit cards offer rewards or loyalty programs that you can use to offset the cost of some of your holiday gifts. Check if your credit card is offering any cash back bonuses that you can apply to your statement!

If you have any questions about your credit, or if you’re in the application process, contact one of our expert Loan Officers today