Some people will tell you that there is never a good time to shop on a credit card, and using debit and cash is a far better choice. While it is hardly possible to live without plastic money, sometimes you should just leave your card at home.
If you habitually pay one credit card with another, this will eventually appear on your credit report. Transfer fees have increased considerably, and you will end up paying more up front for transferring your debts. Experts warn that it can cost you more that the rates you are seeking to escape. You should avoid using your credit card if you are approaching your credit limit as well. Counselor with CredAbility Mary Ellen Nicol notes that you should not be within several hundred of your credit limit or you will see your credit score going down. It is better to ask your credit card issuer to raise your limit rather than being near it. There are two ways to go about this. Either try to pay it or find a credit card with a different balance.
If experts say prices will drop, it is probably not the best of times to use your credit card. If the price of an item is going to drop in a couple of months, you may be put off by the idea of paying interest on your purchase today.
Furthermore, research has revealed that you will spend considerably more when shopping with your children. While it comes to mind that your kids will want this or that, you will also be less focused on your shopping list. Hence, you may be charging items that you never thought of buying. Moreover, kid-friendly items are always displayed at eye level and mini-carts add to the problem. When shopping with kids, parents end up splurging on the most expensive items while those placed at lower shelves are of similar quality. Surprisingly, people spend 38 percent more when shopping with their partner, explains author of Buyology: Truth and Lies About Why We Buy, Martin Lindstrom. What you should take from this – leave your credit card at home when shopping with your family, using cash in moderation. And even when you shop alone, avoid using your credit card in the so called ‘zone of seduction’. Here, you will find the most expensive items displayed in the checkout area. Stopping to buy a magazine or a bar of chocolate can easily lead to impulse and unnecessary expensive purchases (the Globe and Mail).
Finally, you should avoid using your credit card after midnight for obvious reasons. Recently, a pet shop in New York banned the purchase of pets while drunk. Alcohol is hardly a good financial advisor, and this is not limited to drunken puppy buying. So, midnight is not the time to make good financial decisions, especially if you happen to be at a casino or some place else which isn’t your home. Experts advise to go to bed and have another look on the next morning.
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