Why You Should Do Holiday Shopping With a Credit Card
Holiday shopping is so much fun. You get to imagine what your friends and family will say when they open up the perfect present. It's a joy to get into the spirit as you see your favorite shops all decorated for the season. Even just walking by the window of a big department store could put you in the mood to go shopping for gifts. When you shop for holiday presents, it's always a good idea to pay with a credit card, and here's why.
Perks and Points
Many credit cards come with perks and points for each purchase that make it worth it to use for your holiday shopping. For example, Best Financial Credit Union has an incredible Star Points Bonus Program. You can earn one point for every single dollar you spend with your Platinum card. Use the points towards gift cards, products for purchase or travel rewards, so you can turn your purchases into a nice trip down the line! Gaining credit card points through holiday purchases helps to balance out this typically expensive time of year. Presents for everyone, travel to visit family and expensive meals in or out add up, but you can get some of that value back through your credit card points.
Some credit cards cover your purchases with extra protection. If the price goes lower on a product you bought, you may be able to get a refund for the difference if you paid with your credit card. Some cards even offer you a warranty on electronics and other goods that could break over time or an extended return time that is longer than the general store policy. Some credit cards also offer insurance coverage for rental cars, so if you are traveling for the holidays, that could be a good option, as well. Check with your specific credit card policy to see what types of protections your card offers.
You Control When You Pay
When it comes to the holidays, it can be a struggle to have enough cash on hand to pay for your purchases all at once. That's where credit cards come in. With Best Financial Credit Union's Visa Credit Card, you even get a 25 day grace period. That means if you pay off your full balance within 25 days, you will not get charged any interest. You could go shopping on December 1 and have all your purchases paid off by Christmas interest-free. Even if you do let your purchases rollover, using a credit card for your holiday gift choices lets you pick when and how you pay it off. You can pay more each month to pay it off faster, or pay the minimum. The point is, paying with a credit card puts you in control of your finances.
Consider a Store Card
Store credit cards are a good option - but only if you regularly shop at a store. Many store cards act as memberships that give you a discount of up to 15% on in-store purchases. However, consider that these types of cards don't often have the same perks as your regular credit card, and they usually have higher interest, too. For most people, it's worth it to get a credit card through their bank or credit union, so they can save with lower interest rates and get some of the value of their purchases back through credit card rewards. However, if you are very loyal to one store and plan to shop there quite frequently, it may be worth it to look over the benefits of that card.
Easy to Pay Off
When you pay with a credit card for holiday purchases, it's easy to pay off. You can use an online portal to pay when it is right for you. Most people even set up automatic payments. With some financial institutions, you can set up payments to occur only within certain limits. So, for example, you can say you want to automatically pay off the whole balance unless it is over a certain amount, in which case you can specify the amount to pay. Now that you can use an online portal to pay your bill, you don't need to make a special trip to the bank to do it. You can just sign-in online via your computer or mobile device and pay when and where it is convenient for you.
Some people worry about getting into credit card debt, but when you use your cards in a smart manner, it is actually a great idea to pay for holiday and year-round purchases with one. You can build your credit which prepares you for larger purchases like a car or house, and structure your payments to stretch your money further so everyone ends up happy in the New Year!
Learn more about Best Financial Credit Union's Visa Credit Card, and then apply before the holiday shopping craze hits to take full advantage of earning points on your gift purchases. The holidays will be here before you know it!