Davis Motor Sales banner ad

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

© 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.

Posted on 2/2/14
springhour
3/13 - 16
3/13 - 16

Most Read This Week

March 02, 2015 9011

Madisonville Teen Faces Numerous Drug Charges

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
February 25, 2015 8293

Multi-Agency Investigation Nets Large-Scale Meth…

in Top News For All Sites by Trooper Stu Recke
February 24, 2015 8104

Two Charged in Central City Meth Bust

in Local (Muhlenberg) Top News by Trooper Stu Recke
February 25, 2015 6305

New Asian Restaurant Coming to Madisonville

in Local (Hopkins) Top News by Gary Gates, SurfKY News
February 24, 2015 5163

School Board Holding Special Called Meeting

in Muhlenberg News by Sherri Miller
March 03, 2015 4881

Three Arrested during Traffic Stop

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center

Most Read This Month

February 12, 2015

UPDATE: Name of Pennyrile Fatality Officially…

in Top News For All Sites Touching Hopkins by Doreen Dennis, SurfKY News
February 09, 2015

Police Pursue Man after Fight at Taco Bell

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center

Stories Trending Today

March 03, 2015 4881

Three Arrested during Traffic Stop

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
March 03, 2015 2564

Sacramento Man Charged with Rape, Sodomy

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
March 03, 2015 1966

Superintendent: Spring Break Won't be Touched…

in Hopkins News by Tammy Holloway, SurfKY News
March 03, 2015 1845

Madisonville Man Charged for Robbery in Greenville

in Top News For All Sites Touching Hopkins by Greenville Police Department
March 03, 2015 1084

Madisonville Police Arrest Reports - March 3, 2015

in Hopkins News by Madisonville Police Department
March 03, 2015 1073

Baptist Health Madisonville Now Offering…

in Hopkins News by Kristy Quinn
March 03, 2015 1022

SHMS Dance Team Places in State Championship

in Hopkins News by South Hopkins Middle School
March 03, 2015 1013

SurfKY News Exclusive: John Conlee Talks of 40…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
March 03, 2015 966

Militant Crazy Religion, Avoid the Damage

in General News For All Sites by Dr. Glenn Mollette
March 03, 2015 959

Local Students Place in Stanley Lewis Cultural…

in Hopkins News by Joyce Riggs