If you tend to overspend during the holiday season, there are plenty of reasons to avoid using credit cards, like going into more debt, paying high interest charges and damaging your credit score by increasing the amount you owe.
However, if you can be disciplined with your shopping, there are lots of benefits to using your credit cards for your holiday hauls.
“Many people believe that the primary reason for using a credit card is to earn reward points,” says Steven Kibbel, a certified financial planner and senior editor at InternationalMoneyTransfer.com. But there are other advantages to using a credit card for holiday shopping.
Learn more about the consumer protections and money-saving perks that credit cards may have to offer.
[Read: Best Credit Cards.]
1. Extended Return Policy
If you’re an early holiday shopper who isn’t buying from a retailer that extends its return policy during the holidays, this credit card benefit might save you some hassle. Return protection allows you to get back money after a store’s return window has closed. So if the new jacket you bought your spouse doesn’t fit or you purchase the wrong video game for your teen, you’ll have a bit of extra time to return it.
Top Credit Card Pick for Extended Return Policy: The Platinum Card® from American Express
Cardholders get up to 90 days of return protection, which allows them to claim a refund on the full purchase price, up to $300 per item. You can use the benefit up to a maximum of $1,000 per calendar year.
Other reasons to get The Platinum Card® from American Express: It’s one of the most popular premium travel rewards cards with a huge welcome offer and VIP benefits like airport lounge access. It has an annual fee of $695. (See Rates & Fees)
Runner-Up: U.S. Bank Altitude Reserve Visa Infinite Card
Another card with strong return protection, U.S. Bank Altitude Reserve Visa Infinite offers an extra 90 days for eligible purchases up to $300. If you are dissatisfied with your purchase and the merchant will not accept your return, you can apply for the benefit. The card has a $400 annual fee, but features a slew of travel benefits and a valuable sign-up bonus.
[Read: Best Rewards Credit Cards.]
2. Extended Warranty
If you’re picking up a few splurge gifts this holiday, you may be asked at the checkout counter or online if you wish to purchase additional coverage on the item. Certain credit cards offer extended warranty coverage, allowing you to waive the retailer’s coverage without worry. “This is an especially helpful benefit that can save you money on big-ticket purchases like an electronic or appliance since you may consider buying extra coverage,” says Andrea Woroch, consumer and money-saving expert and former U.S. News contributor.
If coverage is important to you, she recommends reviewing the extended warranty policies of both the retailer and your credit card to determine if it’s worth spending more on the store plan. “In most cases, the benefits may be similar, so you don’t have to waste your money,” Woroch says.
Top Credit Card Pick for Extended Warranty: Blue Cash Preferred® Card from American Express
With the Blue Cash Preferred® Card from American Express, you can get up to one additional year on original manufacturers’ warranties of five years or less. This coverage is up to $10,000 per covered purchase and can be used up to $50,000 per eligible card per year.
Other reasons to get the Blue Cash Preferred Card from American Express: The star attraction is the industry-leading 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%) and streaming services. You’ll also get 3% cash back at U.S. gas stations and 3% cash back on transit. There is a $0 intro annual fee for the first year, then $95. (See Rates & Fees)
Runner-Up: Chase Sapphire Preferred
Another card with extended warranty protection is the Chase Sapphire Preferred® Card. For purchases paid for with the card, you’ll get an additional year above the manufacturer’s U.S. warranty (of three years or less). For a $95 annual fee, cardholders earn bonus Chase Ultimate Rewards points in multiple categories as well as many additional perks and partner benefits.
3. Purchase Protection
Imagine you drop a breakable item as you’re trying to wrap it, or someone snatches a bag from you at the mall and runs off. If you paid for those items with a credit card that has purchase protection benefits, it can help you recoup some of the cost, Kibbel says. “In case something bought as a gift is mishandled, misplaced or lost shortly after purchase, the consumers can receive compensation for the loss or get a replacement,” he says.
Top Credit Card Pick for Purchase Protection: Chase Freedom Unlimited®
Cardholders can get purchase protection against damage or theft for 120 days and up to $500 per claim ($50,000 per account).
Other reasons to get the Chase Freedom Unlimited®: This no-annual-fee card offers 3% back on dining at restaurants and drugstore purchases and 1.5% on all other purchases. Plus, you’ll get 0% intro annual percentage rate for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.99% – 28.74%.
Runner-Up: American Express® Gold Card
The American Express® Gold Card protects covered purchases for up to 90 days from the purchase date and includes items that are accidentally damaged, stolen or lost. It has a generous coverage amount of up to $10,000 per covered purchase, up to $50,000 per calendar year. The card has an annual fee of $325. (See Rates & Fees)
Honorable Mention: Rocket Visa Signature Card
It’s worth mentioning that the Rocket Visa Signature card is the only card we could find that offers the unique benefit of porch piracy protection. If you know you’ll be getting a lot of home deliveries while you’re not home to retrieve them quickly, this could be a helpful benefit as it covers you for up to $10,000 per stolen item (that you purchased with the card).
[READ: 11 Cool Credit Card Perks You Haven’t Heard About]
4. Price Protection
Ever go shopping and then realize a couple of weeks later that the price on the item you bought dropped? While some retailers will honor the price, it’s usually for a limited time — and credit cards with a price protection benefit give you a much longer window.
Top Credit Card Pick for Price Protection: Capital One SavorOne Cash Rewards Credit Card
The Capital One SavorOne Cash Rewards Credit Card includes the World Elite Mastercard benefit of price protection. If you buy something and discover a lower price within 120 days of your purchase, Capital One will reimburse you for a difference, up to $250.
Other reasons to get the Capital One SavorOne Cash Rewards Cash: This no-annual-fee card offers unlimited 3% cash back in popular spending categories including dining, entertainment, popular streaming services and at grocery stores. Plus it has a cash bonus and a 0% introductory offer for new cardholders. (See Rates & Fees)
Runner-Up: Navy Federal More Rewards American Express Card
This card calls its price protection feature a “best value guarantee.” If within 30 days you see a lower advertised price in print for an identical item you purchased, you can request a refund for the difference up to $250. Note that you’ll have to send proof, and online price comparisons will not be honored.
5. Fraud Protection
“All major credit cards offer zero liability on fraud,” Woroch says. That’s even more important during the holidays. “With more distractions and more spending, fraud activity is higher during the holidays, and cards that offer fraud protection are essential for keeping your personal data safe and your funds in your account,” she says.
Top Credit Card Pick for Extended Fraud Protection: Any Capital One Card
Capital One offers a “virtual assistant” named Eno, which allows you to pay with virtual cards when shopping online. This means your actual card information is hidden, reducing your risk of online fraud.
Runner-Up: Any Discover Card
In addition to the standard fraud protections, Discover cardholders also enjoy free Social Security number monitoring. This includes keeping watch of the dark web, and alerting you if anyone pulls your Experian credit report or opens a new credit card, mortgage, car loan or other account in your name.
6. Free Checked Bags for Holiday Travelers
If you’re visiting relatives for the holidays, you know airfare is expensive enough even before baggage fees. But some airline credit cards offer free checked bags for you and your travel party. “This can be helpful during the holidays if you’re traveling somewhere cold since winter clothing is bulky and if you plan to travel with gifts,” Woroch says. “This way you can avoid the cost to ship gifts to your destination, and you don’t have to worry about paying the $30 to $35 fee per checked bag.”
Top Credit Card Pick for Free Checked Bags: Delta SkyMiles® Gold American Express Card
The free checked-bag perk on this card is good for you and up to eight others traveling on the same itinerary.
Other reasons to get the Delta SkyMiles® Gold American Express Card: It has a $0 introductory annual fee for the first year, then $150. The welcome offer is 80,000 miles if you spend $3,000 in the first six months from card opening, and you’ll earn 2 miles per dollar spent on groceries, dining and Delta purchases. (See Rates & Fees)
Runner-Up: United? Explorer Card
If you fly United, the United? Explorer Card is another card offering a first checked bag free for you and one travel companion on your reservation. The card has a $0 introductory annual fee for the first year, then $95.
[Read: Best Travel Rewards Credit Cards.]
7. Free Shipping and Extra Discounts
Who doesn’t love free shipping during the holidays? “Some credit cards will get you free shipping for your online orders,” Woroch says. While this is most often associated with store credit cards when making a purchase on their website, there are other cards that offer a free membership to ShopRunner, which offers free two-day shipping from over 100 online stores.
Top Credit Card Pick for Free Shipping: Blue Cash Everyday® Card from American Express
One of the benefits of the Blue Cash Everyday® Card from American Express, which offers a $0 annual fee, is a complimentary membership with ShopRunner. All you have to do is enroll and activate your membership to get started. (See Rates & Fees)
Runner-Up: Target Circle Card
One of the main benefits of getting a Target Circle Card is free two-day shipping on most items. The card also offers a 5% discount every time you shop at Target or Target.com, which can help you save on holiday gifts.
8. 0% Introductory APR
Although you may have good intentions to pay your holiday credit card bills in full come January, if your generosity got the best of you, having a credit card with a 0% introductory APR offer on purchases can help you save. It means for the duration of the introductory period, you will not pay any interest.
Top Credit Card Pick for 0% APR: Wells Fargo Reflect® Card
The Wells Fargo Reflect® Card offers one of the longest 0% APR periods at 21 months from account opening. In other words, it’ll get you through next holiday season, too. (After the introductory period, there is an 17.74%, 24.24% or 29.49% variable APR.)
Other reasons to get the Wells Fargo Reflect Card: Although the card does not offer any rewards, if you use it to pay your cellphone bill, you’ll get up to $600 of cellphone protection against damage or theft (after a $25 deductible). (See Rates & Fees)
Honorable Mention: Discover it® Cash Back
Another option for a credit card with a 0% intro APR on purchases is the Discover it® Cash Back card. You’ll get 0% APR 15 months from card opening, and then a 17.74% to 27.74% variable APR. Plus, you’ll get ongoing rewards in the form of 5% cash back in rotating quarterly categories (up to a maximum, and you must activate them) and 1% back on all other purchases. (See Rates & Fees)
More from U.S. News
Best Credit Cards for Easy Approval This Holiday Season
Stop Hoarding Rewards: Inflation Is Coming for Your Credit Card Points
Is the AmEx Platinum Card Annual Fee Worth It?
8 Best Reasons to Use Your Credit Card This Holiday Season originally appeared on usnews.com
