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Holiday shopping? Credit cards can stretch your budget, expert says

Blair Shiff

The National Retail Federation predicts the average American will spend $1,047.83 this holiday season.

If that sticker shock has you wondering how you're going to pay for it all, CompareCards chief industry analyst Matt Schulz has a suggestion.

IS IT TOO SOON FOR HOLIDAY SHOPPING?

"With a little bit of forethought and a little bit of advance planning, you can actually use a credit card to extend your holiday budget a little bit," Schulz told FOX Business.

Schulz recommended getting a cash-back credit card like Chase Freedom Unlimited, as it gives credit-card holders $150 cash back after purchases are made.

"If you plan ahead enough, it can really extend your budget," Schulz said.

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Schulz said if you already have a credit card, don't be scared to get another one.

"There's really no one-size-fits-all answer for how many cards a person should have," Schulz said. "If you have one card, and you don't feel comfortable getting another one, then you shouldn't do it. If you have 10, and you feel like you can manage all of the comings and goings of the bills, and you want to get another card, have at it."

When it comes to picking which card fits your needs, though, Schulz said it's all about asking yourself what you want to get from that card and how you intend to use it.

WINNERS AND LOSERS OF 2019 HOLIDAY SHOPPING SEASON

However, some would caution about applying for a retail credit card.

Credit Card Insider recently published a survey that showed 40 percent of retail credit cardholders regretted applying for a retail store card.

The survey also revealed more than half of retail cardholders ended up paying interest charges on their card, thus negating the benefits of getting the card in the first place.

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