With Christmas fast approaching, new research suggests that it is home improvements that will be high on Brit’s spending lists this year, rather than presents. That’s not the only change in spending habits either. The way in which consumers are now using credit cards has changed. Here, we’ll look at exactly how credit card spending is changing.

Christmas home improvements

The recent AA Financial Services research revealed that Brits are planning on spending a record amount to vamp up their homes this Christmas. Almost half of those participating in the study stated they were planning some form of renovations in the lead up to the big day. However, the majority are planning on using their savings, rather than a credit card to fund it.

The main improvements planned this Christmas are painting, gardening and upgrading the kitchen.

Credit cards used for more as a payment method than borrowing

One of the main ways credit card spending has changed recently, is consumers are now using their cards as more of a payment method than a borrowing tool. Those who are planning to finance their home improvements this Christmas are also considering using a credit card over a personal loan.

This change in attitude towards credit card spending is a positive sign. There are numerous benefits of paying for goods using a credit card and provided they are used correctly, they can be great at building up a healthy credit rating.

The benefits of paying by credit card

Credit cards have long left their bad reputation behind. These days, they are seen as an effective way to rebuild poor credit. However, that’s not their only benefit.

When you use a credit card through a respected provider such as Ocean CreditCard, you also receive great payment protection. If anything goes wrong with your purchase, you are protected under Section 75 of the Consumer Credit Act. This means your credit card provider will be responsible for making the refund. So, even if the company you bought from has gone bankrupt, you will still receive the money back.

There are lots of benefits shopping with a credit card can deliver. However, before applying, it’s important to consider how you plan to use it and whether you’ll be able to stick to making the monthly repayments. When used correctly, credit cards can be really beneficial and consumers are now starting to realise that.