Halloween is a time to delight in the spooky, the mysterious and even the macabre. But the one thing you don’t want to be scary is the credit card bill that comes after Halloween.
Celebrating Halloween is an expensive business for some, what with the cost of costumes, trick-or-treat candy, decorations and party supplies. Don’t be afraid to indulge in the spirit of the season, but do it wisely. One thing that can help reduce your costs is choosing the best credit card to pay for Halloween spending.
[Read: Best Credit Cards.]
Celebrating the Dark Side Has a Price
For a holiday that often centers around ghouls and horror, Halloween certainly makes a lot of people very happy.
“Halloween brings people together in a fun and special way,” says Joyce Zahariadis, founder of lifestyle blog My Stay at Home Adventures. “It creates joy and reminds us of the good times from our childhood. It’s a holiday people look forward to, and many are happy to spend money to make it even more enjoyable.”
There certainly is a lot of spending that goes into all this fun. According to the National Retail Federation, Americans are expected to spend $11.6 billion this Halloween. That works out to an average of $104 per person. The average doesn’t convey the range of extremes that go into it. While one person may just buy a bag of lollipops to hand out to trick-or-treaters, others have considerably more elaborate plans.
For example, Zahariadis has seen families create entire haunted houses to entertain visitors.
“These setups often require significant investments in decorations, special effects and sometimes even paying others to create an immersive experience for the community,” she says.
Here are just a few of the costs that might be involved:
— While many Halloween costumes can be had for under $50, fancier versions run well over $200.
— If you want your house to stand out among all the usual pumpkins and spiderwebs in the neighborhood, you can put a 25-foot Stay Puft Marshmallow Man inflatable on your lawn for about $650.
— A large bag of Halloween candy may cost over $50 — and that’s only if you feel safe getting by with just one bag.
Add in the cost of food and drink for party guests, and you can see how some people spend hundreds, if not thousands, on Halloween.
So how do you pay for all this? An easy option is to put it on your credit card. And playing those cards right can help you create a magically spooky experience for your loved ones while saving you money, helping build credit or perhaps netting some rewards.
Choose the Right Credit Card for Your Halloween Spending
Choosing the right credit card can help reduce Halloween costs. Often, this is a matter of picking the card that best suits your situation.
In keeping with the season, U.S. News & World Report has created a Halloween-themed list highlighting credit cards to match different needs. To identify them, we reviewed credit cards from the top seven credit card issuers in the U.S., which together represented more than half of the credit card purchase volume last year.
Best Credit Card if You Don’t Want to Be Haunted by Interest Charges
If you expect to carry a balance on your credit card from month to month, the interest rate should be a primary consideration when choosing a credit card. If that’s the case, here’s a card to consider:
BankAmericard® Credit Card
— Annual fee: none
— Annual percentage rate: 16.24% to 26.24%
— Notable rewards: none
— Potential sign-up bonus: none
What makes the BankAmericard® Credit Card a good fit: If you carry a substantial balance on your credit card, a low interest rate could be worth more to you than rewards or a signing bonus. This card had the lowest base rate of any reviewed for this comparison.
An added benefit is that this card offers new customers a 0% interest rate on new purchases and qualifying balance transfers for the first 18 billing cycles. An extended holiday from paying interest is a perfect opportunity to make like Dracula and take a big bite out of your credit card debt.
Best Treats for Regular Customers
If you spent enough years trick-or-treating as a child, you probably got to know which houses could be relied on for a friendly reception and the best candy. If you want generous treats as an ongoing credit card customer, here’s a card to take a look at:
U.S. Bank Cash+ Visa Signature Card
— Annual fee: none
— APR: 18.99% to 29.24%
— Notable rewards: 5% on two categories you can choose each quarter (on the first $2,000 spent), plus 2% on another category of your choice
— Potential sign-up bonus: $200 if you spend $1,000 within the first 90 days
What makes the U.S. Bank Cash+ Visa Signature Card a good fit: While other cards might outshine this one in any single category, the combination of generous rewards, a good signing bonus and a relatively low base APR make this a strong all-around offer.
Best Credit Card Treats for New Customers
Remember when you were trick-or-treating as a child and felt the thrill of a large candy bar landing in your bag with a satisfying thud? You might feel that again signing up for a card that welcomes new customers with a cash bonus and a zero interest period. If that sounds good to you, here’s a card to check out:
Bank of America® Customized Cash Rewards Credit Card
— Annual fee: none
— APR: 19.24% to 29.24%
— Notable rewards: 2% cash back on purchases at grocery stores and wholesale clubs and 3% in a category of your choice (on the first $2,500 in combined bonus category purchases each quarter); 1% on everything else
— Potential sign-up bonus: $200 if you spend $1,000 on the card within the first 90 days
What makes the Bank of America® Customized Cash Rewards Credit Card a good fit: A lucrative sign-up bonus with a low spending requirement makes an attractive enticement. Plus, remember those people who used to give trick-or-treaters more than just one piece of candy? On top of the sign-up bonus, this card gives new customers an added treat with a 15-month period of 0% interest.
Best Credit Card for Scary Credit
If you have bad credit, many credit card companies will do the equivalent of turning off the lights and pretending they’re not at home when you come calling. If you want a credit card that welcomes people who are trying to rebuild their credit, here’s one to think about:
Capital One Platinum Secured Credit Card
— Annual fee: none, but a security deposit is required
— APR: 29.99%
— Notable rewards: none
— Potential sign-up bonus: none
What makes the Capital One Platinum Secured Credit Card a good fit: This card offers a single goodie: the opportunity to start rebuilding your credit. It’s a secured credit card, which means you’ll have to provide a security deposit. However, this is refundable, and Capital One offers you a choice of a $49, $99 or $200 deposit so you can start using credit in a way that fits your budget. (See Rates & Fees)
[Read: Best Credit Cards for Excellent Credit.]
Best Credit Card for Treats on Targeted Purchases
As an efficient trick-or-treater, you might consider cherry picking those houses or streets where you’re most likely to get the tastiest treats. The credit card equivalent of this is, if you plan to spend a lot in one particular category, choose a credit card with the best rewards for that type of spending. Here’s an example:
Discover it® Cash Back
— Annual fee: none
— APR: 18.24% to 28.24%
— Notable rewards: 5% on one category that rotates every calendar quarter, up to a quarterly maximum when you activate, plus 1% on everything else
— Potential sign-up bonus: none
What makes the Discover it® Cash Back a good fit: If you can time your purchases to fit the card’s rotating categories for 5% rewards, you could earn a healthy stash of cash back. (See Rates & Fees)
Best Rewards for Your Little Goblins
For many of us, Halloween is about the kids. And if a lot of your budget goes to keeping your little ones entertained, here’s a card to consider:
Disney® Premier Visa® Card
— Annual fee: $49
— APR: 19.24% to 28.24%
— Notable rewards: 5% in Disney rewards dollars on purchases from DisneyPlus.com plus affiliated streaming services Hulu and ESPNPlus. Also, 2% in Disney rewards dollars on purchases at gas stations, grocery stores, restaurants and most Disney U.S. locations.
— Potential sign-up bonus: $300 if you spend $1,000 within the first three months
What makes the Disney® Premier Visa® Card a good fit: High reward percentages can be valuable if you’re already planning to spend money where you can use your Disney rewards dollars. You’ll have to calculate whether this is worth the $49 annual fee, although the generous sign-up bonus should more than take care of that.
Get the Most Out of Whichever Credit Card You Use
Choosing the right credit card is just the start. Then you have to use it wisely to get the most out of it. Here are four strategies for doing that:
Choose a Card That Matches Your Use
There are a few ways this comes into play. For one thing, if you regularly carry a large balance on your card, choosing one with a low interest rate is vital.
In most cases, it’s best to choose a card with no annual fee. There are plenty of options. If you do pay an annual fee, it should be because your use earns you enough rewards and benefits to justify it.
Speaking of rewards, Jason B. Ball, certified financial planner and founder of Jason’s Fin Tips, says, “It’s crucial to pick a rewards program that aligns with how you already spend.” For example, some cards offer elevated rewards percentages in specific categories. Make sure those are categories that will be useful to you.
Don’t Spend More to Chase Rewards or Sign-up Bonuses
As Ball says, “Reward programs can push consumers to spend more to earn points. It’s vital to stay disciplined, keeping your regular spending habits and paying off the balance in full each month. That way rewards are a bonus, not a reason to spend more.”
It’s the same with sign-up bonuses. These bonuses generally require you to spend a set amount of money within a limited period after signing up for the card. So, wait to sign up for a card until just before you plan to purchase enough to qualify for the bonus. That way, you won’t spend more than you would otherwise.
Pay Your Bills on Time
Your payment history is the single biggest factor that determines your credit score. A better credit score allows you to qualify for lower credit card interest rates. Also, late payments lead to late fees and penalty interest rates.
Pay More Than the Minimum Whenever You Can
Minimum payments are often easy to afford, but that’s not necessarily what’s best for you. Low payments cause your debt to drag on longer so you pay more interest. You can reduce that cost by paying your debt off faster. By zeroing your balance every month, you avoid interest charges altogether and reap the rewards for free.
Choosing the right credit card and using it efficiently can take the horror out of household finances. That will free you to enjoy a scary-fun Halloween along with all the other creatures of the night.
More from U.S. News
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Best Credit Cards for Spooky Season originally appeared on usnews.com
