3 reasons to open a new credit card for your holiday purchases
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The holiday season is often a time when shopping shifts into high gear. Before you start spending money on gifts, decorations, and party supplies, it might be worth taking a look at the credit cards in your wallet.
That’s because there are three great reasons to open a new card for your holiday shopping. Here is what they are.
1. To get better purchase protection
If you’re buying big ticket items during the holiday season, credit cards can help protect your investment. This is because some cards offer great purchase protection features, such as theft or damage insurance, price drop protection, or an extended manufacturer warranty.
If your current cards don’t offer many – or none – of these great consumer protection benefits, you might want to consider switching to a credit card that does. This way, you will have extra protections if something goes wrong with the items you buy or if you find them cheaply after purchase.
2. To take advantage of an APR introductory rate of 0%
The holidays can be an expensive time of year, and not everyone can afford to pay for all of their gifts and other expenses up front. While it’s great to save money so you don’t have to go into debt to buy items for the holiday season, it can be late to start this year.
If you need to borrow money, getting a new credit card might be a good way to avoid interest charges. This is because some cards offer introductory rates of 0% APR. If you qualify, you may be able to get several months to pay for your purchases without interest.
Before you opt for any of these cards, you’ll want to know exactly how long the introductory rate lasts. And try to make sure you can pay off the card in full before the 0% rate ends. Otherwise, you could end up paying interest at a high rate. But if you can swing it, signing up for one of these cards could allow you to cover your vacation expenses without adding interest to the bill.
3. To obtain a card adapted to your spending needs
Finally, you might be able to get yourself a card that offers bonus rewards for the spending you’re going to make the most. If you plan to buy a whole bunch of freebies at big box stores, for example, you might want to sign up for a card that offers additional rewards for purchases at those stores.
By getting a rewards card that is well suited to your vacation spending, you can lower your gift costs by recouping a percentage of what you spend.
If you’re hoping to take advantage of any of these perks, start researching the best credit cards now so you can sign up before you go holiday shopping. Then you’ll be good to go with the right card in your wallet.
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