The Dos & Don’ts of Holiday Shopping with Your Credit Card

We get it – the holidays can be just as stressful as joyful, especially when it comes to your wallet. Between gift lists, gatherings, and everyday expenses, it can feel like your budget is doing a bit of heavy lifting. That’s where we come in! If you’re already spending, why not make it a little more rewarding? Think of it as turning holiday hustle into holiday cheer! To help you stay on track, we’ve put together a few best practices for using your credit card while shopping this season. 

Do: 

• Set a budget. When the season gets busy, it’s easy for your spending to snowball. Don’t rely on your credit card limit to set your holiday budget. Have a good understanding of your current financial situation to help determine how much you’re able to spend this season. Check out our Budgeting Worksheet to help you outline your expenses and build a clear plan for the season.

• Monitor your charges. With shopping trips, online orders, and travel, expenses can add up quickly – and this time of year can also create more opportunity for scammers to try to take advantage. Keeping a close eye on your transactions helps you to stay on budget and to quickly spot anything that doesn’t look right. Set up account alerts and use tools that make it easy to stay informed. Visit our Fraud Prevention page for simple ways to keep your account secure throughout the season.

• Maximize your cash rewards. Gifts for them, rewards for you. If you’re already shopping for the people and moments that matter the most, why not earn a little something back for yourself along the way? With our Founder’s Rewards Card, you can earn 1.5%¹ or 2% cash rewards on every purchase – turning holiday spending into holiday cheer.

Don’t: 

• Apply for too many credit cards. Retail store credit cards can be tempting with their discounts, but be careful how many you apply for. Each application can lower your credit score and make lenders think you rely too much on credit. Plus, many of these offers are short-term and may come with fees that cancel out the rewards.

• Max out your credit cards. When making purchases, keep an eye on your credit limit. Maxing out your cards can hurt your credit score by raising your credit utilization – the amount of credit you’re using compared to what’s available. High credit utilization tells lenders you may not manage your available credit well, making them less likely to lend to you in the future.

• Forget to pay your bill. With the holiday season packed with events and obligations, it can be easy to miss important deadlines. The last thing you want to do is miss your credit card bill payment. Missing payments can impact your credit for up to seven years and may result in hefty fees from your card provider. Set reminders on your calendar so you don’t miss payment due dates. Even making small payments each week can help lower your balance and keep your credit in good shape.

Along with these tips, don’t forget to use our digital banking tools to make holiday shopping a little easier. Sign up for account alerts to help you keep track of your spending and use our free credit score service² to keep your credit in check. For more financial tips and tools visit our resource center.

¹You can earn 1.5% cash rewards on purchases. You can earn 2% cash rewards on purchases if you maintain a PSECU checking account and qualifying monthly direct deposit(s) of at least $500. Some exclusions may apply. See the Visa® Founder's Card and Visa® Alumni Rewards Card Rewards Program Terms and Conditions for full details.

²PSECU is not a credit reporting agency. Members must have PSECU checking or a PSECU loan to be eligible for this service. Joint owners are not eligible.