5 Reasons To Advise Your Clients To Use Credit While Holiday Shopping

The average American shopper will spend around $975 on holiday gifts, according to past spending trends and estimates from the American Research Group and the National Retail Federation. Although shoppers have various payment options at their disposal, the use of credit cards remains a popular and financially savvy way to handle purchases, albeit when done correctly.

Credit is safer than carrying cash

Stores are very busy during the holiday rush, and consumers are easily distracted. Carrying around large sums of cash for purchases can put you at risk for theft or losing the money along the way. There’s little chance of having lost or stolen cash returned, but a credit card can be cancelled and replaced. Plus, financial institutions have security protocols in place to freeze accounts and erase purchases that were made under fraudulent scenarios.

Earn reward points while spending

Competition in the credit card world is stiff, and many financial institutions are trying to entice customers with special deals for signing up and using their cards. Some credit cards give cash back. Others accrue points based on spending on particular categories, such as dining or travel. Rewards can be redeemed in various ways and can be a big bonus of using credit over cash.

Track your purchases

Credit card companies track all purchases and will itemize shopping excursions on cardholders’ statements. This can make it much easier to keep track of your spending. In addition, some stores do not require receipts for purchases made with credit cards.

Cards may come with warranties

Credit cards can provide built-in warranties on purchases made on the card, such as replacement coverage for an electronic device or cancellation insurance on a trip. What’s more, if you have a dispute with a merchant or aren’t happy with something you bought, you can often request a chargeback through the credit card company.

Credit cards have many advantages, but it’s imperative that consumers pay their balances in full and on time.