Credit cards are a very convenient mode of payment for all the big and small purchases. Not only do these allow the cardholder with temporary funds but they also provide several other perks such as reward points and cashback. It has been said since long back that one must not ket their debts pile up in any circumstances. Therefore credit cardholders should be discrete while making purchases using their credit cards. Many individuals believe that purchasing gadgets using a credit card is a rather smart idea. These can be any sort of gadgets ranging from a smartphone to an operating system.
There are several reasons why one must choose a credit card for shopping for gadgets:
- Warranty: Many credit cards come with a facility for an extended warranty for the purchased products by default. However, even if your credit card does not come with this feature, the decision whether to opt for the extended warranty or not becomes easy if the purchase is done via the card. As there is no direct involvement of cash, the amount pinches a little less.
- Protection of the Gadget: Most of the warranty extensions plans available at the gadget companies are quite expensive. However, many credit card service providers gove this facility to its customers at a reduced cost.
- 0% Annual Percentage Rate Card: Many card providers offer this facility. This enables the issuer to use the card as and when he finds a satisfactory product. One must avail of these benefits to make the most of their purchase. Also, it is a smart idea to choose a card that has a long offer period with 0% APR.
While credit cards come with multiple such benefits, one must make sure to repay the debt each month. One must not let the debt pile up for months, as this would create a burden later on and also affect one’s credit score. Here are 5 ways how you can make the best use of your credit card while shopping for gadgets:
- SMS Card Alerts: Most of the credit card companies provide SMS card alerts whenever a purchase is made using the card. This gives the cardholder a notification about the occurrence of the transaction and the amount of the transaction. This feature is very crucial while someone is overseas and is using their card frequently as they might miss out on several unintended transactions made by their card. SMS alerts save an individual from frauds that might take place due to negligence and card misplacement.
- Window Shop Online: It is a financially wise idea for customers to search for the product and its prices and online and then purchase the product offline. Users can check the various products available in the market and then compare the prices to offline stores Whichever mode of purchase seems cheap and convenient can be chosen by the customer.
- 0 Percent Deferred Payments: Buying a gadget such as an I-phone or a laptop can put a huge hole in your pockets. IN such scenarios, cardholders have the facility of deferred payments. Cardholders must ensure that this deferred payment does not have any interest charge associated with it. Many credit card service providers offer 0% but the suggested retail price in these cases might be more than the cash price. It is advisable to go for a 0% interest rate at the same cash price. Service providers usually offer 12 months 0% installments. However, in some cases, this may extend to 24 months.
- Promos and Discounts: Apart from the availability of instant funds, interest-free debt, and reward points, there are several promos and discount codes that keep on running on the purchase of smartphones and other gadgets using a credit card. One must make sure to carry out thorough research online before making the payment. These promos can be availed to get hold of those expensive gadgets at a rather cheap price than that in the market.
- Grab the Points: The majority of the credit cards have pints associated with them for each purchase that the cardholder makes using the card. One must make the best use of these reward points. Using cards that provide double the usual points or using the existing reward points for the partial payment of the transaction is also an excellent way to reap the benefits of a credit card purchase.
It is of utmost importance for the cardholders to ensure timely payments of the debts. Also, credit cards should not be considered like a free vending machine that can be used to make lavish spendings any time and every time. Instead, the card must primarily be used to maximize one’s savings by making purchases with it with the purpose of earning rewards, cashbacks, and points.