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The holidays are a time for giving—and spending. But how you choose to pay for those holiday gifts, dinners, and travel expenses can affect your financial health well into the new year. Should you lean on a credit card for the perks and protection? Or stick with cash and debit to keep your budget in check?

Let’s explore the pros, cons, and smarter ways to navigate holiday spending—and how Members Exchange Federal Credit Union (MEFCU) can help you celebrate securely and responsibly.

Credit Card vs. Cash: What Do Most Shoppers Use?

According to recent Bankrate data, 61% of holiday shoppers plan to use debit cards, 57% plan to use credit cards, and nearly half still use cash.

That raises an important question: What payment method actually helps you save—or spend smarter?

Is It Smart to Use a Credit Card for Holiday Shopping?

In many cases, yes—especially if you plan ahead and avoid carrying a balance. Credit cards can offer valuable perks like:

• Federal protections on purchases
• Dispute resolution for missing or defective items
• Rewards points or cashback that help offset spending

But here’s the catch: Bankrate’s 2025 Holiday Spending Report states about 28% of shoppers carry balances into the new year or rely on “Buy Now, Pay Later” services. With average interest rates hovering above 20%, that holiday cheer can come at a steep cost if you’re not careful.

How Can I Avoid Credit Card Debt During the Holidays?

Before you swipe, ask yourself:

• Do I have a clear spending limit for gifts and travel?
• Can I pay this off by the due date?

If you’re unsure, consider these tips:

• Set a realistic holiday budget and stick to it
• Make a gift list and compare it to your actual spending
• Shop sales and use price tracking tools for big purchases
• Avoid store cards with high rates or deferred-interest traps
• Pay more than the minimum—or pay in full

And if you need more flexibility, choose a card that helps you manage responsibly.

What Are the Benefits of Using a Credit Card with No Annual Fee?

Choosing a credit card with no annual fee means your rewards and benefits go further—you’re not paying just to keep the account open.

Many credit unions, including MEFCU, offer credit cards with:

• No annual fees
• Low standard rates

This makes them more affordable and predictable than many retail or rewards cards that charge annual fees for basic benefits.

Should I Use a Credit Card or Debit Card for Holiday Purchases?

Both have their place. But consider this:

Credit cards offer:

• Stronger fraud protection
• The ability to dispute charges
• Purchase protection on eligible items

Debit cards:

• Don’t build debt
• Use funds you already have
• Often carry fewer protections if things go wrong

Use a credit card for online orders, larger purchases, or unfamiliar stores. Use debit for groceries, gas, and smaller day-to-day spending.

How Does a Low-Interest Credit Card Help with Holiday Spending?

A low-interest card can give you room to breathe—especially during a high-expense season like the holidays.

If you carry a balance, a lower rate means less interest eating into your budget. Even better? Introductory offers can help you spread out large purchases.

This allows you to manage big-ticket gifts or travel costs without high interest weighing you down in January.

How Can Members Exchange Federal Credit Union Help?

At MEFCU, we know the holidays should bring joy—not stress. That’s why we offer credit card options designed to make holiday shopping smarter, safer, and more affordable for Mississippi members.

The MEFCU Visa® Platinum Credit Card features:

• No annual fee, so your protections come with no extra cost
• Low ongoing interest rates, helping you save on everyday purchases
• Introductory 0% APR on balance transfers for the first six billing cycles
• Contactless “tap and go” payments for fast, secure checkout
  EMV chip security, providing strong fraud protection at in-store terminals
• Visa® Account Updater, which automatically updates recurring payments if your card changes
• Real-time fraud monitoring and dispute resolution services to keep your spending secure

Reminder: MEFCU blocks foreign transactions by default to protect your account. If you’re traveling abroad, contact us in advance to enable temporary access.

Plus, you’ll gain access to MEFCU’s full suite of digital banking tools and personal financial counseling to support healthy spending habits all year long.

Explore MEFCU Visa® Platinum Credit Card and shop the season with confidence.

Celebrating Smarter with MEFCU This Holiday Season

At Members Exchange Federal Credit Union, we understand that the holidays can bring both joy and financial pressure. That’s why we offer tools and support to help you stay within budget, make secure purchases, and plan for a stronger financial start to 2026. Whether you’re shopping locally, giving generously, or traveling with loved ones, MEFCU is here to help you do it with peace of mind.

We proudly serve individuals and families across Mississippi, including Hinds, Madison, Rankin, Simpson, Copiah, Attala, Claiborne, Covington, Holmes, Jasper, Jefferson, Jefferson Davis, Jones, Lawrence, Leake, Lincoln, Neshoba, Newton, Scott, Smith, Warren, Winston, and Yazoo Counties.

Have questions or ready to take the next step? Contact us and apply for the MEFCU Visa® Platinum Credit Card, visit a branch, or give us a call at (601) 922-3350 or 1-800-748-9459. At MEFCU, we make holiday banking personal—so you can focus on creating meaningful memories this season.