GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’ve got the option to read more about oureditorial guidelinesand our products and servicesreview methodology.
And sure enough, ballooning consumer debts reflect that spending.
It can make sense for some consumers but only if they open cards for the right reasons.
Consider the following reasons to open a new credit card post-holidays, andbeware of the risks, as well.
That can give consumers the breathing room they need to pay off the card without interest compounding on them.
That last part is worth reiterating.
Still, that one-time fee could cost less than the alternative, Woroch said.
And some cards dont charge any balance transfer fees.
Other Post-Holiday Promotional Offers
Interest-free periods arent the only promotions that card companies offer.
Len Covello serves as chief technology officer for the loyalty program tech providerEngagePeople.com.
He understands credit card loyalty rewards better than most.
Of course, you want to choose the reward cards that will benefit your needs and spending most.
And that requires a strategic approach to choosing a new card.
The same goes for other types of credit card rewards.
Bandura urged consumers to consider what perks would benefit them most.
The longer track record you have of making payments on time, the higher your credit score will grow.
But many monthly payments such as rent and many utilities dont report to the credit bureaus.
That is the percentage of available credit that you currently use with debt.
Which, by the way, is the threshold above which balances start hurting your credit score.
Why Shouldnt You Open a New Card Post-Holidays?
For all those advantages, opening a new credit card after the holidays comes with its share of risks.
Kullberg pointed out that the impact on your credit score isnt all positive.
Anew card applicationwill mean a hard inquiry against your credit, which is likely to temporarily ding your score.
Spending incentives aside, it hands consumers deep in the hole of debt a shovel to keep digging.
Howard Dvorkin, the chairman ofDebt.com, has seen this time and again.
Thats like trying to lose your holiday pounds by eatingmore turkey and ham.
Dont dig yourself deeper in the hole of debt.
Only add anew credit cardif it makes sense on its own merits regardless of the time of year.
More From GOBankingRates
Share This Article:
