With the coming holiday season, consumers typically will have a great number of things to deal with.  This is also the time of the year where there is generally a significant increase in spending.  Many consumers also use credit cards to fund these purchases and can be prone to committing several mistakes in credit card usage.  Some of these mistakes will be discussed here and should be avoided. 

The first thing consumers should avoid is to use their small business credit cards for holiday purchases.  Although the newly enacted CARD Act prohibits credit card companies from increasing interest rates on existing balances, the rules only apply for personal credit cards.  The same restrictions are not found in business credit cards, therefore interest rates on existing balances can change at any time.

Credit cards transactions used overseas should also be done with precaution.  Before embarking on the trip, make sure the credit card you have does not inflict any foreign transaction fees.  There are cards available that do not charge foreign transaction fees.  It is also advisable to contact your credit card company in regards to your trip so they can expect foreign transactions in the near future.  If this is not done, your credit card may be suspended due to suspicious overseas transactions.

A more practical advice in regards to holiday credit card usage is to make purchases within your means.  Though this advice may seem obvious, it is surprising to note that many people do not hold to it.  Before doing your holiday shopping, one should set a predetermined spending limit and hold to it.  Individuals can begin saving up for holiday purchases weeks before, to ease up on credit payment.  Credit card payoff calculators are also available for these individuals to estimate the time needed to completely pay for large purchases. 

With all that is going on during the holiday season, it is sometimes easy to exceed the maximum allowed credit limit on your credit cards.  Consumers should be weary of committing this common mistake.  Exceeding the credit limit might entail some unwanted consequences and penalties such as expensive fees and interest rate increases. 

Finally, if you expect this holiday shopping spree to involve you carry a balance for at least a few months, make sure you use a credit card with the lowest interest rate.  With some researching, one can easily find credit cards with a promotional rate of zero percent for the first twelve months.  In addition, if your current cards have increased rates due to late payments, you can call your credit card issuer to reduce the rates after six concurrent months of punctual payments.