Shopping with credit cards has become second nature now. As shopping with cash takes backseat, here are certain things that you must know about shopping with plastic money because a third party, i.e. your credit card company is involved in the transactions between you and the store where you shop. I always prefer to make purchases on cash payment as it’s a no hassle way of dealing with a transaction, because it involves the simple exchange of money for goods. But if you must go the credit card way, here are some tips you could do with to avoid stepping into the financial ‘manholes’.

0 % Interest Rate

The 0 % interest rate strikes us like Cupid! We are flat for this when any company mentions it. Now stop blundering! Don’t get lured by this seemingly harmless proposition that entices you to buy things as big as very expensive household furniture etc. If you ever think of opting for one, be clear about the discount that the store is offering along with how much they are going to charge for a late payment. Even a single late payment might hike up the interest rate to 20 %. Moreover, when you apply for a new card, your credit score will be lowered due to the enquiry.

Sky Rocketing Interest Rates

The interest rates of many credit cards this is year as high as 20 %. With the Credit Card Act of 2009 trimming off predatory and abusive lending practices, credit card companies are facing a lot of stringency in general. The interest rates are randomly fluctuating with the availability of credit at higher rates of interest. Go through the fine print to see about what the company has to say about interest rates.

Return Policies

Your credit card company might offer to accept any purchased item that you might want to return to the store within a pre-specified period of time. This is advantageous to you if the store does not accept the returned goods. Generally stores have a return acceptance period of 15-30 days of purchase whereas the credit card company accepts the goods to be returned for a period of 90 days from the date of purchase.

Post Holiday Purchase Price Adjustments

Many credit cards offer to adjust prices on whatever you buy for a period of two months. So, if a retail store does not give any concession during the holiday season but chooses to give after that, even then you are benefited because your credit card can still be used to adjust the difference in prices.

Credit Card Amount Tracking

Always keep track of the amount of money you have spent on your holiday shopping and if you have enough of money in your bank account to pay up your credit card bills. For this, you can go online and find out how much you have in your checking account and from that you just need subtract the amount of money you spent on your holiday goodies. You’ll come to know if your bank account carries enough funds to make your credit card payments in time.

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