With the Christmas holidays just around the corner, it is easy to fall into the temptation of swiping your credit card to splurge on gifts in this festive time of the year.
But in spite of the lure to spend more, your credit card can actually be the best and most practical way to shop for holiday presents, that is, as long as you can pay off your purchases right away.
So, the million-dollar question now is, should you purchase your Christmas gifts with a credit card, or would you be better off with paying these in cash or using your debit card instead?
Well, the answer here is quite simple and straightforward. As long as you are not in a serious credit card debt at the moment, and you are confident that you can have your purchases paid off in a matter of 30 days, there are several smart reasons why it would be worth it to do away with cash and stick with your credit card as an alternative for your Christmas purchases.
You Can Take Advantage of Better Protection
If ever your credit card gets stolen, technically, the money at stake is that of the credit card company and not yours. It means that they will deal with the situation right away after you have filed a report.
On the other hand, things are different with credit cards. You will probably be able to get your money back provided that you report the theft right on time. However, you still need to prove your case well. There is even the risk of going broke until your funds have been released by the bank.
You Can Get Back Some of Your Money If Prices Fall
There are several card issuers such as Chase, Citi, Discover, Capital One, and Mastercard that offer the so-called price protection. It means that they monitor the price for a specific window, usually 60 days, and once this fails, you will be eligible to receive a refund of the difference. When Christmas is over, this policy can be very rewarding when prices of certain items start falling, especially stuff such as seasonal decorations.
You May Get Valuable Return Policy and Warranty Extensions
Make sure you review the terms and conditions of your credit card. There are credit cards that offer extended warranty protection to shoppes together with extended return policies. There are also instances when it can mean double the warranty provided by the manufacturer and up to a maximum of three times longer for returning a product.
Just see to it that you are using your credit card only as a tool for temporary cash flow and make sure that you pay this off in full way before the next month comes. If not, your interest payments may quickly overweigh the benefits of your cards, leading to more debts than what you can afford in the first place.
Enjoy your Christmas shopping and use your credit card wisely as you do so! We are hoping you got your answer of Should You Purchase Christmas Gifts with a Credit Card?