Why Do Canadians Prefer To Use Credit Cards While Holiday Shopping?

With the holiday shopping season now in full swing, Canadians are currently trying to find the best deals for the best gifts. In most cases, they will be using their credit cards to pay for their purchases. Not only is credit cards usage practically mandatory for online shopping (which is more popular than ever at this time of year), but it offers many benefits.

Why do Canadians use credit cards for their holiday shopping?

Some credit cards offer rewards for spending.

Arguably, the most popular of all credit cards are those that offer rewards points. Who wouldn’t want to earn something extra for all the spending they do? With cards that offer rewards, a shopper earns points for every dollar spent. Those points turn into free perks in the long run. Travel rewards are particularly popular. Cardholders who collect points towards travel often enjoy free hotel stays, airline tickets and car rentals.

“The potential to earn credit card rewards is one of the single best reasons for charging purchases on your credit cards,” says Christy Bieber on Fool.com, “If you don’t already have a good rewards card, consider applying for one before the festive season. Look for a card that is well matched to your spending. If you tend to spend big bucks dining out over the holidays, for example, opt for a rewards card that gives bonuses for restaurant spending.”

Some credit cards provide significant discounts.

Unquestionably, this is the time of year when shopping on a budget is commonplace. With holiday shoppers spending more than they normally would at any other time of the year, they hope to take advantage of as many discounts as possible. Cash back credit cards allow their users to save money.

“When you shop with a cash-back credit card, you automatically get money back with every purchase,” explains Gabrielle Olya on GOBankingRates.com, “Some cash-back cards offer higher cash-back percentages based on the purchase category, so keep that in mind when deciding which cash-back card to use for your holiday shopping purchases.”

Credit cards allow you to extend your payments.

With much bigger spending amounts expected during the holiday season, many consumers need extra time to pay off their balances. By using credit cards, people can take time making payments with interest accruing on their outstanding balances. A credit card purchase is the equivalent of a small loan. One doesn’t have to have the money at the time of the purchase. Being given time to pay it off in full often makes the purchase possible.

“If you can qualify for a credit card offering a 0% promotional APR on purchases, you may be able to avoid the additional costs of borrowing,” informs Bieber, “You could use your 0% card to buy what you need and pay no interest charges at all as long as you pay off the balance before the promotional rate expires. This can buy you months more time to come up with the cash for your holiday spending.”

Do you accept credit cards at your place of business?

At Divvia, we offer a variety of high-quality payment terminals including the revolutionary Poynt Smart Terminal. This Android-based terminal has a suite of business management tools that allow you to keep track of all your orders, reports and inventory in one place. For more information, please don’t hesitate to call us at 1-877-748-2884 or send us a message on our Contact Us page!

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