Many occasions call for gifts; birthdays, anniversaries, weddings, graduations, and other relevant milestones in one’s life. Most people dread the idea of shopping because of the crowd, the long lines, and the traffic!
But gift-giving is something we can’t take for granted. Remembering someone’s special day and honoring them with something that they would like to have is a touching gesture anyone would love to receive. So, whether it’s your son, daughter, your parents, or your partner, it wouldn’t hurt to spend a little and scour the shop for the things that would make them happy.
So, get on your feet or take out that laptop and begin shopping for gifts in the store or online. It’s a good thing you have something to look forward to when you use your credit cards to pay for your purchases for any occasion.
Here are some advantages of shopping using a rewards credit card:
Gives You A Welcome Bonus
If you’ve been holding up on sending that credit card application, the best time to submit it is right before any significant occasion comes up. This is because an approved credit card application can give you welcome bonus points.
This fantastic offer provides the cardholder with a reward in the form of one-time lump cash back or a hefty amount of bonus points upon completing a required amount of purchase. You can use the cash back for your purchases or offset your annual fees, while the points you earned, you may use in many things, something I will discuss further in the article. When I signed up for my new credit card right after I got hired from my very first job, I earned 60,000 points which I then saved and collected, which helped me buy my very first smartphone.
Earns You Miles
Suppose you’re an avid traveler, acquiring an airline credit card could be beneficial for you since it offers a frequent flyer miles program. It’s a loyalty program wherein you’ll be rewarded for purchasing airline tickets using your credit card. Most airlines with partnered credit cards also give miles for every dollar spent on shopping or dining using your card. With that said, you may shop to your heart’s content while picturing yourself in a skimpy bikini, sunbathing in the Maldives. What an exciting thought, am I right?
Aside from miles, the frequent flyer program also gives exclusive cardholder perks such as access to VIP lounges of international airports, waived baggage fees, free seat selection, and priority upgrades. More reasons to swipe and hoard stuff from the shop.
“Consider using a credit card that offers rewards in the coming summer season,” recommends Scott Langdon, Analyst for Compare Credit. “The cash back or airline miles can add up pretty quick on purchases that you were already going to make.”
Racks You Points
Now here’s where it gets tempting. You can use points that you earn from all your purchases to redeem enjoyable stuff. Many credit cards offer redemption of points in hotels and restaurants. You may use your points for an overnight stay with a sumptuous breakfast at a luxurious hotel in the city. Or you may also use your saved-up points to treat your wife to a nice formal dinner in an elegant fine-dining restaurant.
Some credit cards offer reward points that you can exchange for gas, coffee, and merchandise from posh brands. While I shopped my life away in my 20s, I have accumulated enough points to stay for many nights at a 5-star hotel in New York City. Upon signing up for a hotel partnered credit card, you’ll automatically get a free night for a year, you can also use your saved points with it simultaneously.
But the best thing is you can convert your points to cash vouchers, something you can benefit from in times you might need extra bucks.
Will Score You Additional Discounts
Most shopping establishments try to lure shoppers with huge discounts during weekends. And with this, shoppers have more reason to flock to the shops. But for credit cardholders, there could be offers on top of the deals of establishments, which makes it even more enticing to shop. For instance, if a shop offers a 20 % discount, your card can add another 10%, making it a whopping 30% off on your shopping spree.
Exciting Online Offers
If you’re the type to shun away from the crowd, online shopping is the perfect way to buy all your gifting needs in the comfort of your home. Credit cards offer exciting online purchase promos that will give you the same perks or even more than you get from store shopping.
Many credit card companies give higher cashback offers for online purchases and more significant rewards points, so you get to redeem more exclusive stuff such as electronics, sporting goods, and groceries.
So, if you plan to buy that latest model of smartphone on the market, you might as well hold that thought until you finish your shopping spree. Collect those points because who knows, you may not only have a new smartphone but a shiny new golf club to boot.
Amazing 0% Annual Percentage Rate (APR)
If you’re planning to buy your husband a new elegant timepiece as a birthday gift, it’s time to take advantage of the 0% APR offered by credit cards. Credit cards can offer a 0% APR of up to 21 months for large spendings. With this in mind, you can take courage and not worry about paying for that costly purchase, and your husband will surely appreciate your gift.
Maybe you want new platinum earrings studded with diamonds for yourself. That USD$1,250 worth of jewelry you’ve been eyeing every time you pass by the festive glass window of your favorite jeweler is now something you can buy for yourself without the guilt. Why? Well, instead of paying with a sizeable interest, you can now pay for it in a stretched period and without the strapping interest.
I remember my first 0% APR experience when I bought my wife a new smart home entertainment system, which I paid for 18 months. Initially, I was worried about whether I could complete the stretch without any issues as I have two kids in primary private school to think about. But surprisingly, 18 months passed without notice, and I successfully paid for it.
Accords You Protection
Shopping using your credit card is a safer option than bringing lumps of cash when completing your shopping spree. The rise of pickpockets or purse-snatchers in shops is a continuing cause of panic and anxiety for many shoppers. These snatchers have become very creative in carrying out their heist too. A short conversation on your phone can give the crook the perfect opportunity to steal your stuff. So, it’s more convenient and safer to bring a credit card when shopping.
Credit cards also offer extended warranties and purchase protection on items bought using the card. You’ll be surprised some even offer price protection in the event the price of the item drops within a specific period.
Low Balance Transfer Rates
Some credit cards offer better deals in reward points and interest rates. Many frugal spenders siphon their money from less competitive credit cards to those they know they could get more from.
At the end of the day, the thought of being able to complete payment of your credit will give you more peace of mind. So, why not be strategic and transfer your balance to a credit card company that will give you more payment flexibility.
Gives You Cash Back Benefits
Many rewards credit cards give cashback options where you can receive a percentage of every dollar you spend, which may be a rate of 1% or 2%. Although, some credit cards give a higher percentage rate of up to 5% cashback in some categories such as gas, groceries, and dining. The cashback you earned may be redeemed in multiple ways. It could be a deduction on your credit or a cash equivalent to be transferred to your savings account.
Shopping for gifts for the people you love gives a feeling of contentment knowing that the gift will be appreciated. Giving gifts on occasion strengthens the bond of family and friends, more so, if the gift is well-thought-out.
Psychologists have pointed out that the giver has a bigger psychological gain than the receiver. The act of giving someone an important item gives one a sense of euphoria because of the release of dopamine in the process.
Truly knowing what your loved ones would like to receive by constantly communicating with them is an essential part of gift-giving. Buying gifts without any thought or consideration to the person diminish the importance of the gift-giving process. Just because you have a credit card that you can swipe at any time doesn’t mean you can buy anything you want.
With great power comes great responsibilities. Incurring large balances in your credit card might significantly hurt your credit score or standing in the long run. The luxury of spending using your credit card needs to be handled responsibly. With that in mind, you can safely enjoy the benefits of shopping using a rewards credit card.