Back-to-school shopping costs can add up quickly. You might start by buying pens, notebooks, and pencils, but the final tally often surprises you. Clothing expenses can also be significant, even when you take advantage of sales and discounts, especially if you’re updating a whole fall wardrobe. For parents spending hundreds of dollars each year on back-to-school items, using a credit card might be a smart move.
However, it’s essential to weigh the pros and cons before deciding to use a credit card.
**Pros**
1. **Reward Points**
One big advantage of using a credit card is earning rewards. Before applying, ensure you’re eligible for the card. The more you spend, the more cash back or reward points you earn, which can translate into statement credits, travel points, dining deals, or other benefits. Premium cards often offer enticing sign-up bonuses. For example, some cards offer 60,000 bonus points for spending $500 in the first three months. The Capital One Quicksilver card gives 1.5% cash back and a $150 sign-on bonus after spending $500 in the first three months. Using your credit card for school supplies or clothes can help you reach these bonuses, especially if you pay off your balance every month. Combine this with in-store rebates or digital coupons to maximize your rewards.
2. **0% APR Offers**
A 0% APR offer can seem very appealing, but remember, it might lead to unhealthy debt habits. Some back-to-school items can be expensive, and a 0% APR credit card can help you spread out these costs over six to 24 months without interest. Just be careful not to overuse it to avoid financial stress and ensure you pay off the balance before the promotional rate ends and the interest rises.
3. **Purchase and Price Protection**
Credit cards offer a safer way to shop compared to cash, thanks to various protective measures. If you lose your credit card, you can freeze the account immediately, but lost cash is likely gone forever. Many cards offer purchase protection, including replacements for damaged or stolen items and refunds for unsatisfactory goods or services, some even offer extended warranties for free. Price protection on some cards means if an item you purchased gets discounted after your purchase, you might get the difference back.
While these perks are appealing, consider the potential downsides before opting for a credit card for back-to-school shopping.
**Cons**
1. **Increased Spending Temptation**
Having a credit card might tempt you to spend more, so make sure to stick to your budget to avoid overspending on back-to-school items.
2. **Higher Debt Risk**
Overspending can lead to carrying a balance that accrues interest, making the debt harder to manage over time due to high credit card interest rates. It’s not worth the risk of going into debt for back-to-school shopping when there are ways to find free or inexpensive school supplies.
**Conclusion**
Using a credit card for back-to-school shopping offers benefits like rewards and purchase or price protection, but it’s essential to consider the potential negatives and assess your spending habits honestly. If you risk falling into debt or don’t have the cash to pay off your balance, the rewards and discounts might not be worth it. Plenty of cost-effective options for school supplies are available.