This is a question I’ve been asked quite a few times this Christmas season so I decided to post some information on this subject.
Credit Cards Can Be a Great Financial Tool During the Holidays
They always say, cash is king but carrying a large sum of cash is risky. I wouldn’t want to be in the middle of any department store flashing large sums of money. Christmas brings out many shoppers but it also brings out unscrupulous folks looking for easy prey. If you decide to pay for your purchases in cash, keep your funds very secure and don’t let anyone get a glimpse of your bank roll.
While paying cash prevents the big credit card bills from coming in your mail box in January, paying with credit cards provide a number of valuable benefits.
Credit Card Benefit #1- loss or theft of wallet or purse. If your cash is lost or stolen, you have a huge problem. If your credit cards are lost or stolen, you are only limited to $50. Your debit card has a higher limit but still less risky that carrying cash.
Credit Card Protection #2- many credit card issuers offer extended warranties on the purchases you make using their credit card. You’ll never find this extended offer for free while paying with cash. Most people are unaware of this benefit. I highly suggest you read the fine print that came with your credit card as this free offer is a wonderful perk that comes with most credit cards.
My advice is to get your Christmas list together, set a budget which you can afford to pay in cash. Once you have your list, go out and shop and use credit cards and reserve the necessary funds to pay the credit cards off in full come January. By doing this, you reduce your risk of financial loss, in most cases get better warranties and avoid starting the new year off by carrying high interest rate credit card balances.
After all, an educated shopper is the best shopper.
Credit Reporting / Scoring Expert, Chris McConville is the President of Credit Education at CureMyScore.com and founder of myexpertcreditwitness.com where he works as an Expert Credit Witness work in both Federal and State Court. With more than 20 years experience working in credit along with his extensive past Mortgage Originating career, he’s dedicated to sharing his knowledge to educating consumers.
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