Time to read : 3 Minutes
The Best Christmas Credit Card Hacks
We are officially just 32 days away from the big day, and it’s getting expensive.
Fuel, food, utilities, and really just about everything (but alcohol) is costing more – so how can you still have a merry time and not break your budget?
Well, it sounds counterintuitive, but using your credit card wisely, could be the solution.
🔍 Let’s find out how.
1. Hello, yee points
Points have come a long way since credit cards first launched in Australia in 1974.
🤓 In order to use them, you need to find a rewards card, this usually means you get a point or similar for every dollar that you spend.
You can now use them to buy flights, wine, shop on retailers portals and even donate your points with some cards to charity.
Every bank has its own points system, and some purchases might give you more points than others.
Depending on the card, your point could be worth one cent or more – meaning the more you spend, the more points you accrue.
So let’s make that an easy calculation – you want to use your points to fly. The flight costs $350 and you use your 15,000 points to pay for it, so 350/15000 = 0.02 cents a point.
Basically you want to pick a credit card that has rewards you want, so if you want travel, you’ll want to pick one that has that on offer.
Typically, the best value rewards on credit card frequent flyer programs are for flights.
2. Transfer tinsel
Another potentially clever way you can utilise your credit card is to transfer the balance to another card that has a 0%-interest free period.
🫶 So you go from having to pay interest to not having to do so for that length of time.
Lenders usually offer interest-free rate deals between 12 to 36 months in length.
It could also help you consolidate your debt to transfer your balances from your other cards into one place too, giving you that extended period of time to catch-up on repayments.
Some cards also have a limit on how much you can transfer, so do your research first.
Be aware: There can be a balance transfer and monthly fees attached, so be sure to read the terms and conditions.
3. Hark, store cards
A little less known, but potentially useful hack is to look at a store’s own card – especially if you shop there a lot.
🛒 They usually have smaller limits but can come with useful discounts.
For example, David Jones has two cards on offer – both with fees, but with a point system of one reward point = 1 membership reward point or .05 Qantas point.
Their card also includes free alterations and access to pre-sales events – that meet their terms and conditions. Which could help if you love to do your Christmas shopping at their store.
Coles also have their own credit cards – and with the average Chrissy dinner looking to cost us about $300, you could collect two flybuys points for every eligible $1 you spend. They cap the spend at $3000 for each statement period.
HO! HO! HO! … If benefits are what you are after…
🎄 We have found some you might want to check out.
Qantas points – you can now book your Qantas hotels with 30% less points, and your Qantas holidays with 45% less points.
AMEX – with the ‘Plan It’ feature you can now pay off your credit card balance in installments.
HSBC has an interest-free and repayment-plan card on offer that you could use on minimum spend purchases. They offer six-72 month plans.
Extended warranty is another good one to look out for – Westpac currently offers up to 24 months on eligible buys.
International travel insurance is also complimentary on some credit cards – NAB offers it on some of their eligible debit and credit cards, with a minimum spend.
The bottom line this happy season is
Christmas is always likely to cost us more than the rest of the year but with some sensible spending and credit card smarts, it could be easier.
🤶🏽 Always read your credit cards terms and conditions to make sure you know what is on offer and how it works.
✏️ And as MoneySmart recommends, make a Christmas budget and check it twice!
🎁 Compare prices before you buy to make sure you are getting the best deal and make sure they have a fair and extended returns and refund policy too!
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The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions.
