For years, many financial experts have suggested people avoid using their credit cards during the holiday season to help them avoid the accumulation of debt.
However, if you are able to pay off your credit card in full on time each month to avoid paying any interest payments and late fees, and you are able to use less than one-third of your credit limit, there are several benefits to using your credit card for your holiday shopping:
Better Than Carrying Cash
Nearly all credit cards have both theft and fraud protection. Would you rather go out to the crowded shopping malls with $1,000 in cash or with a piece of plastic? It is much safer to shop with a credit card.
Easier To Track Purchases
Your credit card statement gives you a detailed accounting of where you have spent your money. This is much easier than trying to track your cash expenditures. This can help you stay on your holiday budget.
Built In Added Benefits
Many credit cards have additional benefits to help you throughout the year. Some cards now offer a price protection service that refunds you money if the price of an item drops after you have purchased it on your credit card. Most higher-end cards offer free extended warranties, purchase protection and return protection. Research and take advantage of the benefits of your credit card.
Earn Rewards Points
Many credit cards come with attractive rewards programs, some offering as much as 5% cash back when you make certain purchases. As long as you pay the entire balance off at the end of the month, your credit card can actually make money for you. These rewards can add up to a nice year-end bonus.
Credit card spending isn't for everyone, but using a card responsibly and wisely can provide terrific benefits for you.