Credit cards have the potential to make a big impact on your finances. They\u2019re a great way to build your credit history, earn rewards and some even come with some pretty handy perks. But many Americans are spending less time choosing a credit card than they are remembering their video streaming passwords. That may be even truer around the holidays when issuers are pushing huge sign-up bonuses. So, what does that mean for you?<\/p>\n\n\n\n
Getting a credit card this time of year isn\u2019t a bad idea. In fact, it may even be in your best interest, depending on your situation. This guide will layout everything you need to know when it comes to choosing a credit card this holiday season.<\/p>\n\n\n Tracking<\/b><\/p>\n\n\n\n It can be tough to figure out where to begin when looking for a credit card. Start by figuring out how and where you spend most of your money. Try to think beyond your holiday shopping, and really how do you plan to use this card long term.<\/p>\n\n\n\n Take a look at the last three to six months worth of spending history. You\u2019ll want to look for any patterns in your spending habits. For example, if you consistently see that you spend a good amount on gas, it could be worth finding a card that rewards you for those purchases. A good rule of thumb \u2013 you shouldn\u2019t have to work for your credit card, it should work for you.<\/p>\n\n\n\n Let\u2019s say you love to cook and rarely dine out. You probably won\u2019t find a lot of value out of a card that rewards you for purchases at restaurants. Or if you\u2019re like many servicemembers who plan on traveling home for the holidays, maybe finding a card that rewards you for travel purchases. Figuring out your spending habits is sort of like the boot camp of credit card shopping. Everyone\u2019s got to do it and while it certainly isn\u2019t all that fun, it\u2019s the foundation for everything to follow.<\/p>\n\n\n\n Pro Tip: Track your spending and find a card that directly aligns with the purchases you make most often.<\/p>\n\n\n\n Sign-up bonus or smoke screen?<\/b><\/p>\n\n\n\n A sign-up bonus is often the first thing you\u2019ll see in a credit card offer. Because the credit card industry is so competitive, issuers push large promotions giving you the ability to earn a boatload of points, miles or cash-back. Some offers even include a purchase grace, giving you time to pay down those larger purchases without paying interest for a certain period of time.<\/p>\n\n\n\n While sign-up bonuses are a great way to come into a windfall of points, they shouldn\u2019t be the only reason you apply for a credit card. A lot of retailers will offer you a certain percentage off your purchase if you sign-up for a store credit card, but that may not be the best idea.<\/p>\n\n\n\n \u201cWhat you may not realize is that a lot of those cards come along with a 25 to 30 percent interest rate on the card,\u201d said Justin Zeidman, head of credit card products at Navy Federal. \u201cWhile sign-up bonuses are really important to choosing the right card for you, you want to make sure that you\u2019re understanding not only the way that you spend, but what are all the features and benefits that come along with the card to make sure you\u2019re getting the most value.\u201d<\/p>\n\n\n\n Pro Tip: Sign-up bonuses are great, but don\u2019t forget that the interest rate, rewards structure and other benefits will determine the long-term use of the card.<\/p>\n\n\n\n After the smoke clears\u2026<\/b><\/p>\n\n\n\n Now that you\u2019ve determined your spending habits and you\u2019re familiar with what to look out for with sign-up bonuses, let\u2019s take a look at those additional benefits that can help get you through the holidays.<\/p>\n\n\n\n For a lot of folks, nothing is more important than security and that\u2019s probably more true for military servicemembers who are often targeted by fraudsters. And with more than half of Americans projected to spend more than half of their holiday shopping money on online purchases, it\u2019s important you have the tools in place to keep your finances secure.<\/p>\n\n\n\n Pro Tip: \u201cAt the end of the day, when you\u2019re picking a card you want to look at not only the short term but the long term as well. The best way to do that is to understand the reward structure that comes with the card, the interest rate that\u2019s going to be on the card long term, but also what are the other features and benefits that come along with the card as well,\u201d added Zeidman.<\/p>\n\n\n\n The holidays are a great time to think about getting a credit card, especially if there\u2019s a pretty attractive sign-up bonus associated with it. Just remember to find a card that rewards you for all the ways that you spend, think beyond just the holiday season and don\u2019t forget about those \u2018other\u2019 benefits. Choosing a credit card isn\u2019t meant to be hard, but if you do it right, it certainly should take longer than figuring out your Netflix password.<\/p>\n","protected":false},"author":7,"featured_media":91123,"menu_order":0,"template":"single-native-legacy","meta":{"_acf_changed":false,"_acf":"","_yoast_wpseo_primary_category":"11"},"advertiser":[3438],"class_list":["post-55314","native","type-native","status-publish","has-post-thumbnail","hentry","advertiser-navy-federal"],"acf":{"subheadline":"","legacy_arc_id":"B6J2AFRSUVHBVITWI5UQKZSY3M","arc_canonical_url":"\/native\/navy-federal\/2018\/12\/12\/your-credit-card-holiday-guide\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"native-layout","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"\n