What's your spending style this holiday season?

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November 16, 2010

With Christmas on the way and the start of the holiday season approaching, spending season has begun. But if you don’t have any cash saved or your cash is sitting in a savings account earning a high interest rate, you can still make the most of this time of the year by choosing the best credit card for you.

To answer all of your shopping prayers RateCity has created a credit card shopper’s guide to help you choose the right card to suit your spending style this season. Whether you are a Christmas scrooge or shopping enthusiast, RateCity shows the best types of cards to save you money.

Christmas scrooge
In Charles Dickens’ A Christmas Carol, Ebenezer Scrooge ended up spending up big one Christmas after being a miser most of his life. If you don’t use your credit card very often but just use it to purchase a few presents to place under the Christmas tree, your credit card spending habits are more like Scrooge’s. But you may also strain to pay off your credit card when the first bill after Christmas arrives, so here’s the perfect type of card for you:

  • Suitable card: Search for a lowest-rate credit card with a low or no annual fee. Because you don’t use your card often, except at times of the year like now, it is hardly worth paying a high annual fee that you won’t get your money’s worth. The low interest rate will mean you won’t be stung with as much interest and it can help you to pay off your credit card balance sooner.

Seasonal splurger
You might have a bit of money saved for this festive season but plan to use your credit card while you’re on holidays and then pay off the entire balance over the next few months.

  • Suitable card: Try to find a low-rate card with very low annual fee so that you can save in interest and don’t pay for more than you need. You don’t need a card with an expensive rewards program because you don’t spend enough in a year to accumulate enough points to outweigh the expensive annual fee and interest.

Eager reindeer
You will be using your card for a majority of your shopping this Christmas or while on a well-deserved holiday. You aren’t too worried about the interest rate because you pay off your balance each month, but you’re more concerned about the features and fees of the card.

  • Suitable card: Choose a card with no annual fee because the higher interest rate won’t affect you if you pay off your balance each month. Some no annual fee cards come with rewards, which would be a bonus benefit.

Christmas enthusiast
You are a high-income earner whose credit card gets a good work-out, not only all year round but especially during the holiday season. However, you always pay off your balance (or the majority of it) each month because you can afford to pay it off.

  • Suitable card: Look for a credit card with a rewards program that you will get the most out of as well as features such as free travel insurance and complimentary concierge services.

No matter what your spending style is, find the right card this holiday season by comparing credit cards online.



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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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