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

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.

Most Read This Week

April 13, 2015 6161

Three Juveniles, Adult Accused of Vandalizing…

by Deputy Will Coursey
April 14, 2015 4828

Several Juveniles Charged in Connection with Fight

by SurfKY News
April 17, 2015 3861

An Open Letter from an Addict

by Olivia Kirks
April 16, 2015 3344

Crime Stoppers Fugitive of the Week – April 16,…

by Hopkinsville – Christian County Crime Stoppers
April 11, 2015 2968

Juvenile Injured When Struck by Vehicle

by Madisonville Police

Most Read This Month

March 18, 2015 10048

UPDATE: Hanson Man Located in Henderson, Taken to…

by Trooper Stu Recke
April 02, 2015 8434

UPDATE: Madisonville Man Injured in Head-on…

by Doreen Dennis, SurfKY News

Stories Trending Now

April 17, 2015 3861

An Open Letter from an Addict

by Olivia Kirks
April 18, 2015 2101

Man Charged with Attempting to Coerce Minor for…

by Madisonville Police Department
April 17, 2015 1073

Madisonville Police Reports Released

by Rita Dukes Smith, SurfKY News Director
April 17, 2015 1036

Two Charged in Connection with Powderly Firearms…

by SurfKY News
April 17, 2015 913

Police Officers Building Up Community by Helping…

by Doreen Dennis, SurfKY News
April 17, 2015 819

Hopkins County Sheriff's Reports Released

by SurfKY News
April 17, 2015 578

'The Bidding is On' at Annual Library Auction

by Tammy Holloway, SurfKY News
April 17, 2015 524

Free Seedling Plantings Available While Supplies…

by Amber Averitt, SurfKY News
April 17, 2015 486

Brown Pitches Baseball to Series Opener over…

by UK Athletics