Use The “Right” Credit Card During The Holidays

rewards card extended warranty credit card

Much of what we discuss here is geared to helping you take control of your financial life by helping you understand and improve your credit and financial situation. Part of this process, as with anything else in life is making the best choice at every step in the process.

Little choices are like compound interest, the better you make each one, the better your financial destiny will be. While it may seem inconsequential at the time they add up.

During this time of the year, you are likely to be faced with more purchasing decisions than normal as you tick the list of who to buy gifts for. While, deciding how much to spend and what to buy each person is in itself an important decision, there is another that you may be overlooking that may give you an opportunity to feather your nest a little more, or at least obtain a small benefit for yourself.

That is, what form of payment to use to pay for those gifts. Each time you head up to the cash register, you are faced with one of these small decisions.

Jim Wang reports on Yahoo several factors to consider.

When you go shopping this month for holiday gifts, picking the right credit card for the job is critical because selecting the wrong one can negatively impact your finances for months. In some instances, it has to do with cash back. In others, it has to do with card benefits you may have never used.

He then goes on to list some considerations for making this decision including:

  • Should you use a credit card that offers an additional extended warranty;
  • Should you use a card that offers rewards or cash back; and
  • Finally, he cautions you to beware of department store cards that offer a discount.

While this list is a good starting point, I think one alternative is missing. Consider using cash (or a debit card) for your purchases.

Buying that shiny new present for your beloved may cause a temporary feeling of joy, the additional burden of paying for it PLUS interest over time may not be worth it. The holiday season is not just about who gave the best present, but it is a time for enjoying the company of your family and loved ones, that’s what they’ll remember years from now, not that new pair of shoes that will eventually be thrown out.

Remember to take a moment and make a series of small good choices and you will see your life and finances be taken to a whole new level.

About Anthony Candella

Anthony is the founder and Directing Attorney of and has been helping consumers just like you understand and improve your credit and financial situation since 2003.