How to Use a Credit Card Wisely

The holiday season is upon us yet again! For many, that means dealing with buying presents for our loved ones. If you're one of the millions of Filipinos who will be using a credit card to do your holiday shopping this year, then this blog post is for you. Keep reading to find out some tips for how to use your credit card wisely over the holidays so you don't end up in debt come January.

How to Use Your Credit Card Smartly

1. Know Your Limit

The first tip to using your credit card wisely is to know your limit. This means knowing how much you can spend without putting yourself in financial jeopardy. Take a look at your budget and make sure you have enough room in your monthly expenditures to cover any additional holiday spending. It's also a good idea to call your credit card company and ask about your credit limit so you know exactly how much you have to work with.

2. Pay Your Balance in Full Each Month

This is a crucial tip if you want to avoid paying interest on your holiday purchases. Make sure you pay your entire balance when the bill comes due, so you don't get hit with any unpleasant surprise charges come January. If you can't afford to pay it in full each time, then try to at least pay more than the minimum due so you can get ahead of the game. Just be careful because interest accumulates, so if you’re not careful, you may end up paying more interest than the cost of the item itself!

3. Use Rewards Points

Many credit cards offer rewards points that can be redeemed for cash back or discounts on future purchases. If you have a rewards credit card, make sure you use it for all of your holiday shopping so you can rack up points and save yourself some money down the road. Just be sure not to spend more than you can afford just to earn rewards points!

4. Don't Let Emotions Get the Best of You

It can be easy to get caught up in the excitement of the holiday season and make impulse purchases that you later regret. Before buying anything on a whim, take a step back and ask yourself if it's something you really need or if it's just something that's caught your eye at the moment. If it's not something you need, then put it back and walk away! 

The holidays are a wonderful time of year, but they can also be a major source of stress for many people. If you're one of those people who gets stressed out about holiday shopping, then these tips are for you! By following these simple tips, you can use your credit card wisely this holiday season and avoid getting into debt come January. Follow these tips on how to use your credit card wisely so you can go out there and enjoy all the festive cheer without worry. Good luck!