3 Things To Know With Credit Cards Deals Around The Holidays

December 7, 2018 Stu Q

We have all heard the ads and the spiel from the sales representatives about the amazing credit card deals around this time of year. There are so many opportunities for you to take advantage of percentages off and extra rewards by signing up for a new card. However, most of these are not going to be worth it in the long run. It is important to understand the key attributes, benefits, and negatives before embarking on a new card.

1) Avoid Retail Store Credit Cards

One of the main culprits of the credit card sales is department and other retail stores. They will offer to have you sign up on that day to save 10% off of the purchase and roughly 5% off in the future (these are fictitious values). Although in the moment it may seem like a wonderful deal, the truth is likely much different than you think. In reality a percentage discount is actually enabling you to spend more to reap the reward. Added to this is the bonus of having to track a separate credit card through another institution. Also, once you add in the hit to your credit score and the low quality line of credit to your FICO score, you have not seen a benefit at all. Simply put, don’t get caught up in retail credit cards.

2) Added Debt Means Added Problems

Sure, saving some money on some purchases would be great through a new credit card. However, a credit card is just another reason for you can use to spend more money. Some of us are needing to travel back home this time of year. Luckily, the airline companies have also picked up on this and have added their own branded credit cards to the mix. With their card you can get more air miles and some slightly cheaper tickets. However, many of these cards come with much higher interest rates than normal as well as an annual fee. It is great that airlines and other companies are offering services like this to help those of us afford travel this time of year, but it is just another added debt to contend with after the holidays. Try to avoid new credit cards during times of need, as they can often cause more harm than good.

3) Check The Spending Habits Before Deciding

One of the most important things to understand before getting any new card regardless of the time of year is yourself. You need to understand your spending habits and what kinds of things you are looking for in a credit card. There are so many options out there for consumers today, don’t just get one because it is all you know. Do your research on the types of rewards, features, bonuses, and fees they have. You then need to evaluate your spending habits. Understand how your spending habits will transfer or not transfer over to a new card for the future. Be smart about credit cards as they can be dangerous.

It is certainly a wonderful time of year, just be mindful. The easiest way to ruin what should be a joyous time is the regret you will later feel for spending too much money.