CHARLOTTE, N.C. — Now that the holidays are in full swing, many shoppers are feeling the effects of inflation as they buy gifts this year.
A recent report from WalletHub shows that 1 in 3 Americans are forgoing gifts this year as they deal with inflation. Nearly 1 in 4 Americans say they are still in debt from last year’s holiday spending.
WalletHub predicts more people will apply for credit cards this year to help them with their holiday spending. CNBC has released some tips to help those planning to open a new line of credit.
- Making a deposit: Many people don’t know that building a line of credit may require you to make a deposit. Credit card issuers want to make sure you can pay off a credit line until you can prove your trustworthiness.
- Shop around before you apply: By law, credit card issuers have to publicly disclose on their website their interest rates and annual fees. There are a handful of credit cards with no annual fees, which are great for new credit card holders.
- Pay your bill on time and in full: You might feel intimidated by a credit card’s high interest rates, but if you pay your bill on time and in full every month you won’t have to pay any interest. Plus, many cards offer a grace period, which is the time between when your billing cycle ends and when your bill is due. During the grace period, you may not be charged interest rates. But again, that’s if you pay off the balance owed by the due date.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.
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