Back-to-school shopping can get expensive quickly. At first, you might think you’re only buying essentials like pens, notebooks, and pencils, but the total cost often ends up being much more. Buying clothes, even with sales and discounts, can be particularly pricey, especially when updating a whole wardrobe for fall. For parents who spend hundreds of dollars each year during this season, using a credit card might be a practical option.
It’s important to weigh the pros and cons before deciding to use a credit card, though.
**Pros:**
1. **Reward Points:**
One big advantage of using a credit card is earning rewards. Before getting one, check if you’re eligible. The more you spend, the more cash back or reward points you can earn, which can be redeemed for things like statement credits, travel points, or dining offers. Some premium cards offer attractive sign-on bonuses. For example, spending $500 in the first three months could get you 60,000 bonus points. The Capital One Quicksilver card offers 1.5% cash back plus a $150 sign-on bonus after spending $500 in the first three months. Using your credit card for school shopping can help you reach these bonuses, especially if you pay off your balance each month. Combining this with in-store rebates or digital coupons can maximize your rewards.
2. **0% APR Offers:**
While a 0% APR offer can be appealing, be mindful it can also lead to unhealthy debt if not managed well. However, it can help spread out the cost of expensive school items over six to 24 months without interest, if managed correctly. Just be sure to pay it off before the promotional period ends to avoid high interest rates.
3. **Protection for Purchases and Pricing:**
Credit cards offer more protection than cash. If you lose your card, you can freeze your account, but lost cash is usually gone forever. Many credit cards provide purchase protection, which can include replacing damaged or stolen items or refunds for unsatisfactory purchases. Some cards also offer extended warranty protection for free. Price protection is another feature; if an item you bought goes on sale after your purchase, some cards will refund the difference.
Despite these advantages, it’s crucial to consider the downsides before using a credit card for back-to-school shopping.
**Cons:**
1. **Increased Spending Temptation:**
Having a credit card might tempt you to spend more. It’s important to stick to your budget to avoid overspending, especially during back-to-school shopping.
2. **Higher Debt Risk:**
Overspending can lead to not being able to pay off your full balance, resulting in accumulated debt with interest charges. Over time, managing this debt becomes difficult as credit card interest rates are high. The risk of going into debt for school supplies may not be justified when there are cheaper alternatives available.
**In Conclusion:**
While using a credit card for back-to-school shopping comes with benefits like rewards and purchase protection, it’s essential to be aware of the potential downsides and be honest about your spending habits. If there’s a risk of accumulating debt or if you lack the necessary cash, the rewards might not be worth it. There are many cost-effective ways to get school supplies without relying on credit cards.
Have you used a credit card for your back-to-school shopping? Why or why not?