Choose Your Christmas Credit Card Wisely

In the coming weeks to Christmas all you will be thinking about is how you are going to fund your festive gifts and luxury food. Many people choose to use a credit card when paying for their presents and choosing the right credit card could help save you some money and make the cost of Christmas a little easier.

0% Interest

A credit card that offers 0% interest on purchases for an introductory period could be a wise choice as you would be spreading the cost without paying extra interest on your items. How long you want to pay off your Christmas spending is also a factor as the introductory period differs from issuer to issuer. The best UK credit card at the moment for a 0% interest rate on purchases has to be the Halifax One Visa Card as the introductory offer entitles you to a whole year interest free on purchases.

Balance Transfer

If you are planning to start your Christmas shopping now and don’t have the time to apply for a better credit card then using your current credit card to buy your gifts and then transferring your credit onto a new card offering a 0% contract at a later date could also prove beneficial. Although many credit card issuers have introduced a fee for balance transfers there are still some issuers that offer a 0% balance transfer. The fee on most balance transfers that you are charged for are typically around 2% with you paying no more than 50 pounds for the privilege, so it would be wise to weigh up the pros and cons and decide if it will save you money if you opt for a fee charging transfer.

Reward Schemes

Many credit cards offer a wide range of reward schemes from air miles to cash back. Credit cards that offer a reward scheme whereby points can be collected every time you purchase on your credit card are turned into shopping vouchers. These shopping vouchers can be handy when doing your shopping and cut the cost of Christmas even further. Sainsbury’s credit card may be a good choice if you do your shopping there as their credit card offers an introductory 0% interest period for 10 months and there are many discounts to be had in store if you are a holder of a Sainsbury’s credit card.

Being sensible with the amount of money you spend on Christmas shopping is probably the most important factor that you need to think about. Planning ahead and working out a budget for Christmas and sticking to it, whether choosing a new credit card with a 0% interest deal or saving up credit card points, will stand you in good stead for minimal stress during what is meant to be a happy time of year.