4 Credit Safety Tips for the Holiday Shopping Season

4 Credit Safety Tips are Know What Credit Suits the Season, Use Your Credit Card Like it’s Cash, Know Your Account Perks, Check Your Accounts for Fraud.

Let’s face it — despite restrictions lifting on in-person shopping, you’re probably going to do the majority of your holiday shopping online. Research company Adobe Analytics predicts e-commerce sales will jump to $207 billion this holiday season. That’s a 10 percent increase from last year’s pandemic spending.

Shopping online is a convenient way to cross off the people on your list, and it’s a safe option when it comes to your health. But scrolling through digital shelves may expose your finances to fraud and convince you to overspend. 

To help you avoid these dangers, keep scrolling. Here are four Credit Safety Tips to help you use credit safely this holiday.

1. Know What Credit Suits the Season

There are pros and cons to tapping into credit this holiday season. Whether those pros outweigh the cons depends on what kind of credit you’re using. 

You see, credit is a broad term that describes any financial account. It includes mortgages, lines of credit, payday cash advances, online loans, installment loans, and more. 

When it comes to lines of credit and installment loans, you should only consider borrowing money when you need it in an emergency. They can help in case your water heater stops working one chilly winter morning, but they’re not meant to boost your holiday shopping.

In fact, most of the loans mentioned in the list above aren’t designed for luxury spending. Only a Credit Safety card may help, provided you use it responsibly. 

2. Use Your Credit Card Like it’s Cash

Have you ever been surprised by your credit card bill after a month of swiping your plastic? You wouldn’t be alone. Most people tend to overspend when using their credit cards.

To help you stick to your budget, treat it like it’s cash. Only purchase something you can afford to pay off by the time your statement arrives. This shopping hack is easier to follow when you use a detailed list containing items you priced checked against your budget.  

3. Know Your Account Perks for Credit Safety

You don’t need the famous black charge card to access significant perks this holiday. Even free credit cards come with some kind of bonus that can help you save money. Check to see if your card company offers discounts on affiliated retailers and if you have enough rewards to redeem on the expensive items on your list.

Check your account policy on purchase protection, too. This extra may protect you if something goes wrong this holiday — whether a porch bandit steals a package or a retailer never delivers the goods. 

4. Check Your Accounts for Fraud

Between filling your cupboards with seasonal treats and leaving presents under the tree, your car sees a lot of action this season. You should check your statements regularly to make sure you haven’t accidentally exposed your account number to fraudsters. 

Go online to check your statements every week, looking for any purchase you didn’t make. If you see something you can’t explain, lock the card and reach out to both the retailer and your card company for assistance. 

Bottom Lines on Credit Safety Tips

Shopping online with credit is a convenient way to prepare for the season. It can be safe, too, when you follow these tips.