The Best Credit Cards For Christmas Spending

The festive season is upon us, the time of year when generally your credit card goes into hyperdrive and your balance begins to bloat with all the pressies, festive treats and summer holiday purchases. You might have noticed some banks getting into the giving mood as well, with some awesome discounts on credit cards at this time of the year.

Exactly what deals could you could get your hands on?

0% Interest Deals

There are many credit cards on the market with low or even 0% interest on purchases for an introductory period, often for 6 months or even longer. What’s great about these offers is that you can spread the cost of Christmas. Rather than get slammed with Christmas costs in one big hit, with a 0% purchase rate offer you can pay down your debt in smaller chunks over the 6 months free interest period. Provided you make the required minimum monthly repayments any purchases you make won’t incur any interest, so with the pressure off  you’re free to enjoy the summer.

0% purchase interest rate credit cards

Credit Card Intro Rate Interest Rate

Bankwest
Zero
0%
For 6 months
17.99%

American Express
Qantas American Express Discovery Card
0%
For 6 months
20.74%

Bankwest
Breeze MasterCard
0%
For 6 months
10.99%
Commonwealth Bank Low Rate Credit Card 0% for 5 months 13.24%

ANZ
Low Rate Platinum
0% for 6 months 13.14%

Hot Savings Tip:

If your super savvy, use the 6 months where you don’t have to pay any interest and put that money to work for you. Instead of waving goodbye to your money to pay down your credit card balance at the end of each month, pay the minimum requirement and put the rest of the repayment into a high interest savings account. At the end of the interest free period use the money in your savings account to pay off your credit card balance and with the interest earned enjoy Christmas in July!

Earn Rewards for your Christmas Spending?

If Christmas is the high time for credit card use it should also be the best period for racking up rewards points. Many credit cards this time of year have some great incentives that will help you earn rewards fast whether you want flights, shopping gift cards or cash back.

Bonus rewards offers

Credit Card Interest Rate Bonus Points offer

NAB
Qantas Gold
19.99% 18,000 bonus Qantas Frequent Flyer Points

ANZ
Rewards Platinum
19.39% 20,000 Bonus Rewards Points

Virgin Money
Velocity Flyer Card
20.99% 15,000 bonus Velocity points

Christmas Credit Card Tips:

  1. Did you know many credit cards come with automatic purchase protection? This often includes cover on your purchases if they break or are stolen. Some credit cards even offer Price Protection insurance so if the item you just bought goes on sale a couple of days later, you’ll get the difference back on what you paid. Check our blog on Purchase Protection for more details.
  2. Create a Christmas spending budget and stick to it. Just because you’ve got a $5000 limit on your new credit card it doesn’t mean you should spend it.
  3. Intro rate deals are a great way to save now but be sure you take note of what rate the credit card reverts back to after the intro period. You don’t want to get stuck with a sky high credit card interest rate and a large Christmas debt to repay.
  4. If you’re doing a balance transfer, make sure the interest rate reverts back to the purchase rate and not the cash advance rate. Check our blog on balance transfer credit cards for more.
  5. Don’t withdraw cash using your credit card. Withdrawing cash on your credit card will be charged at a higher cash advance interest rate not the low purchase rate. So if you need cash stick your debit card.
  6. Act now. If you want a new credit card in time for the December Madness it’s time to act. Credit card processing times vary between banks and it can take a few weeks to get your new card!

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The Best Credit Cards For Christmas Spending was last modified: July 27, 2015 by Kevin Boyle

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