The perks to using your credit card during the holidays.
The end of the year almost always means we’re spending a little more money than usual. With all the holiday events and festivities on our calendars, our wallets, budgets, and even credit cards can feel stretched to the limit. But what if that didn’t need to be the case?
Believe it or not, you can use credit cards to your advantage this holiday season. In this Clearview blog article, we’ll explore how responsibly swiping your cards can actually help you save money, potentially boost your credit score and provide more financial security.
Build or spend your rewards
Having a cash back or rewards card, like our Premium World® Mastercard®, can be a powerful tool when shopping during the holiday season. In its simplest form, these cards reward you for every dollar you spend while using it. You can use these credit cards to your advantage because when you spend more, you can earn more.
Use those cash back rewards on future purchases in the new year, as a statement credit when your next bill comes in, or save them for the future! A couple of other tips to keep in mind:
- Don’t overspend just to build your rewards.
- Be sure to pay your balance off at the end of each month to get the most out of your rewards and avoid interest.
- Consider using this card to pay for larger purchases that you've saved up for. You can take advantage of the rewards from the transaction while also avoiding interest by paying off the full balance with the money you've saved!
Opportunity to build your credit when you use credit cards to your advantage
We all know how important your credit score is to your financial life. But did you know that responsibly using your cards can actually boost your score as well? Paying your balance in full and on time can really help your credit score! Other components that make up your score include payment history, usage, length of history, and much more.
Responsible use of your credit card and knowledge of how your credit score is built can have long-term benefits to your overall financial health. Just remember, your score can take time to build! This is just one of dozens of ways, that when implemented together, can steer your credit score in the right direction.
Provides a little more security
Credit cards tend to have more fraud protections in place than debit cards. With this and the rise of holiday fraud schemes in mind, it may benefit you to use credit cards to your advantage when making purchases this busy season. Using your card is also safer than walking around with cash, which can be easily misplaced.
At Clearview, we offer even more protection with our app, Card Defense®. Using this app, you can report your card lost or stolen, turn cards off and on, set transaction alerts, and even activate a card.
So are you ready to use credit cards to your advantage? Remember, the key to success here is to use your card within reason and not to overspend. We hope that you have a financially safe, secure, and successful holiday season ahead!