Should You Use a Cash Back Card Offer or Promotional Retail Store Card
In holiday seasons, it is time you want to make the best use of discounted deals and coupons while still staying on budget. One thing you need to avoid is getting sucked into menace of latest deals. It is important to decide if you want to use cash back offers or the promotional retail store cards. Picking the right card during the holidays is of paramount importance because with the wrong one, you could easily affect your finances in the coming months.
You may use the cash back cards while at other times, you can count on promotional retail store cards depending on which situation favors your spending and at the same time protects your future finances. With various credit cards offering 5 percent cash back bonus, you can use these cards to bank as many cash back rewards as you can.
The revolving category credit cards will help you save money during the holiday shopping. But departmental store cards are also an ideal option during this time of the year because they attract bigger savings on purchases. You can enjoy 15 or 20 percent off purchases when you apply for the store cards. If you are spending on large purchases, this sounds good as you could save a lot with these departmental retail store cards.
However, the problem is that when you apply for a new credit card, it could injure your credit report and the score will be hit to small margin. If you plan to go for a major credit facility next year such as buying a car, the small hit on your score could increase the interest rate you are granted on your next borrowing.
Although saving some bucks during the holiday season is a good idea, if it ends up affecting your future borrowing, you should think again. As long as the promotional retail credit card does not end up costing thousands of dollars through higher interest rates when you borrow next time, you may opt for it in the holiday season because it will save you cash in a big way. In addition, if you can clear the balances in one month, you may also opt for the retail store reward cards.
There are many credit card promotions offering thousands of gift cards if you are able to spend enough and meet the criteria for the rewards. Because you are spending big for the holidays and you do not want to hurt your interest rates for future credit facilities, you can use the cash back reward cards for the large purchase as they can offer better deals than departmental stores. However, this will depend on how much you are spending and you need to check the promotions keenly.
If you cannot meet the spending criterion or caps on the perks that allow you get the cash back, then you may opt for the promotional retail store card provided that they will not hit your score for future borrowing. Promotional store cards will promise you a huge saving that could be as high as 20 percent. This is certainly a good deal and what consumers may not know is that you have to apply for the card, which warrants some forethought. A new card will impact your score and also open up avenues for a new debt