Christmas shoppers set to rely on credit cards as caution arises – guidance issued
Credit card usage may rise in the coming weeks as Christmas approaches and consumers look out for some last minute deals. This could occur despite recent research from TSB showing British people are planning to spend cautiously as 2020 comes to a close.
TSB recently examined internal data and analysed responses from a sample of 2.000 adults, showing the majority of UK households are planning to spend cautiously in the coming weeks, with the majority (62 percent) expected to “remain in the black” rather than take on debt to fund Christmas.
Despite this, the same findings show 19 percent of shoppers plan to rely on their credit cards for their Christmas shopping.
Pella Frost, an Everyday Banking Director at TSB, commented on this: “While many people will take a sensible approach to spending this Christmas, we know that others will be feeling the financial strain as they try to make the most of their Christmas celebrations.
READ MORE: Martin Lewis issues guidance on building credit ratings
On this, Barclaycard issued a number of tips on how consumers can make the most of their credit cards, utilise debt products effectively and build their credit records.
Build or improve your credit score
Credit scores or ratings show how well a person has built up and managed their borrowings over the last six years and these ratings are used by lenders to assess how risky it would be to provide someone with funding.
As such, these scores are very important for those looking to make big financial commitments, such as applying for a mortgage.
To boost these scores, Barclaycard advises people to use their credit cards regularly but always ensure repayments are made on time and credit limits are not exceeded.
Additionally, it was highlighted many people are not aware that being on an Electoral Register will also boost credit scores.
Be selective
For those looking for a new credit card deal, it’s advisable to look around and research the different cards on offer to ensure you pick a card that is right for them.
However, consumers should not apply for too many cards in a short period of time.
This could lower their credit score as credit reference agencies may think they’re facing money troubles and reduce their chances of a successful application.
Overseas spending
While travelling may seem unlikely at the moment, those looking for holidays in 2021 should note using a credit card overseas can sometimes help them avoid charges on withdrawals and purchases.
Additionally, a credit card can be a safer alternative to carrying large amounts of cash while on holiday.
Consumers should check their terms and conditions for their credit cards before travelling and let their bank know they are going overseas.
Consumer rewards
Finally, Barclaycard advised consumers to look into potential benefits they could be entitled to when seeking out products.
This can include cashback, hotel benefits or entertainment benefits
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