CCARDUS (12/15/13) — Many shoppers are fully aware of the dangers of making too many credit card purchases during the holiday season. Though it's important to avoid accumulating debt, there are advantages to using credit cards throughout the year, including during the popular holiday shopping season.

* Cardholders can earn rewards. Paying in cash or with debit cards rarely earns shoppers any rewards. However, many credit card companies now reward responsible cardholders for using their credit cards. Some cards allow cardholders to get a percentage of cash back on each of their purchases, figures that can add up to a significant amount of money over time. Other cards reward cardholders with discounts on air travel or offer gift cards with a predetermined amount of money on them. Some cards even reward especially qualified applicants just for signing up, offering bonuses that can be as high as a few hundred dollars.

* Cardholders can pad their portfolios. Shoppers with strong credit histories and a grasp of the financial markets might be able to find a credit card that invests a certain percentage of their purchases. Such cards are essentially the same as cash back cards, only instead of getting the cash back from their credit card companies, cardholders have that cash deposited into an investment account. Such cards typically offer a higher percentage of cash back per purchase than more standard cash back rewards cards.

* Credit cards offer more security than debit cards. Security is another advantage of credit cards. When a debit card is used fraudulently, that money is immediately taken out of a cardholder's account just as it would be when the card is used legally. Though account holders are likely to recover those funds eventually, they do not have those funds at their disposal until the situation is resolved, which can take as little as a few days to much, much longer. However, when credit cards are used fraudulently, cardholders simply notify their companies and the charges being disputed do not need to be paid until the issue has been resolved. Card numbers can be stolen at any time by anyone, be it store clerks at the mall or hackers peeking at your online purchases. Credit cards offer more security than debit cards when making such purchases.

* Credit cards offer more insurance than debit cards. Though gifts for friends and family may account for the bulk of holiday budgets, consumers still make additional purchases during the holiday season. Using credit cards to rent vehicles, purchase airline tickets and buy products for your home may help you save money in the long run. For example, when using a major credit card to rent a car, chances are that car is already being insured by your credit card provider, which can save you substantial amounts of money on costly rental company insurance policies. Many credit cards also provide travel insurance to protect cardholders who financed their trips using their credit cards. Such protections can come in handy for consumers who travel a lot during the holiday season.

SurfKY News your social media marketing partner

LIKE SurfKY on Facebook - Click here to LIKE us now.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

Weather Sponsored by

1 DOW 17,798.49
-14.90 (-0.08%)    
2 S&P 2,090.11
+1.24 (0.06%)    
3 NASDAQ 5,127.52
+11.38 (0.22%)    

Stock Report Sponsored by

In Other News...

Local Teen Hospitalized after Officer-Involved Shooting

MADISONVILLE, Ky. (11/28/15) ― Kentucky State Police Post 2 in Madisonville is investigating an officer involved… Read More

Hopkins County District Court Fines Handed Down

HOPKINS COUNTY, Ky. (11/28/15) — The following fines were handed down in Hopkins District Court recently: Travis J.… Read More

Most Read This Week

November 24, 2015 10212

Distillery to Operate in Old Graham School…

by SurfKY News
November 21, 2015 8895

Injuries Result from Beulah Road Accident

by Doreen Dennis, SurfKY News
November 23, 2015 7754

Relative Charged with Murder, Arson in Deaths of…

by SurfKY News
November 24, 2015 4856

Ohio County Most Wanted - Top 10 - November 24

by SurfKY News
November 24, 2015 3427

Man Injured When Vehicle Collides with Deer

by SurfKY News

Most Read This Month

November 17, 2015 16301

Ohio County Most Wanted - Top 10 - November 17

by SurfKY News
November 18, 2015 14580

Runaway Teen Returns on His Own

by SurfKY News

Stories Trending Now

November 27, 2015 2996

Madisonville Man Charged with Attempted Murder…

by SurfKY News
November 28, 2015 2649

Woman Charged with Counterfeit Money Leads to…

by SurfKY News
November 28, 2015 2450

Local Teen Hospitalized after Officer-Involved…

by Doreen Dennis, SurfKY News
November 28, 2015 1876

KSP Arrests Ohio Co. Man on Drug Charges

by SurfKY News
November 27, 2015 1593

First United Bancorp Set to Purchase Town &…

by SurfKY News
November 27, 2015 1152

Farm City Breakfast Recognizes Importance of…

by Tammy Holloway, SurfKY News
November 27, 2015 1091

Hooked on Science - Pinecone Hygrometer

by SurfKY News
November 27, 2015 857

Webster County Man Injured in Two-Vehicle Crash

by SurfKY News
November 27, 2015 666

Governor-Elect Bevin Names Two Key Appointments…

by SurfKY News