Credit Card Hacks: Expert tips to maximize your benefits this holiday

Mass. — For many families, the magic of the holidays is made possible – in part – by the plastic in your purse or wallet. While overusing credit cards is one of the fastest ways to get yourself into financial trouble, understanding their benefits can help maximize your savings and protect your purchase.

“The general personal financial advice is not to use a credit card unless you can pay it off in full,” says money expert Andrea Woroch.

But there are benefits to using them instead of cash, debit, and even buy now/pay later programs, Woroch says. And other experts agree.

“Some credit cards have special benefits that will really pay for themselves many times over,” says Consumer World’s Edgar Dworsky. “If you’re buying a major appliance, I always say use a credit card that doubles the manufacturer’s warranty.”

There are some cards that offer a price guarantee, Dworsky says, which can help if you find the same item for a lower price after you’ve already purchased it.

Dworsky also recommends using cards with return protection in the event a retailer will not refund or exchange an item.

“If your card has return protection on it, the credit card company will buy it back from you,” Dworsky says.

Most cards list their benefits online, says savings expert Trae Bodge. For shoppers looking for a new card or better benefits, Bodge says to first ask yourself where you shop and how you will use the card.

“For me, it’s a no-brainer to have that one card in your wallet that’s giving you benefits on everything,” Bodge says. “For example, if you’re a Target shopper, the Target circle card is a fantastic card because it gives you 5% cash back at Target.”

If you find you’re in over your head after the holidays, there are cards for that, too.

“A smart move would be using a balance transfer card to help you get through the holidays without additional interest accruing,” Woroch says.

Balance transfer cards allow you to transfer debt from one card to another, giving the user up to 21 months to pay down the debt before interest rates kick in.  They can help shoppers who want to stretch their holiday payments over time without incurring penalties or interest fees for failing to pay in full each month.

“That way you’re going to avoid the 18%, 24%, 30% interest,” Edgar Dworsky says. “You lose the benefit of the bargains you got if you’re carrying out payments.”

You can compare credit cards, their benefits, and their terms online at cardrates.com.

If you’re a cardholder in good standing with no late or missed payments for at least six months, call your card company and ask about lowering your interest rate. A 2023 Lending Tree survey found 76% of people who called and asked for a lower interest rate were successful in getting one.

This is a developing story. Check back for updates as more information becomes available.

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