Which perks suit online shoppers?
When it comes to shopping online and credit cards, you’re probably going to be interested in a card with these features:
- Long interest free days on purchases (55+) so you get a bit of breathing space to pay if off each month without paying interest
- A reasonable ongoing purchase rate, one below 15%
- Extended warranty and purchase security
- No international transaction fees
- Bonus rewards points. This can be an offer when you signup, or bonus partners with online outlets where you will be happy to spend on the card
Why use a credit card and not a debit card?
Debit cards are a good choice for anyone who can’t control the amount they might spend online, and the amount of debt you can get in will be limited, but using a credit card can still be useful for both convenience and security. If there is a sale item you want to buy on the day, a credit card can help you get it and you can transfer the money back when you do have it in your bank account. Credit cards are also increasingly useful for transactions that might end up in a dispute too. Credit card companies have a strong interest in making sure transactions are processed correctly, and because the funds might not be transferred instantly, any fraudulent or disputed transactions can often be stopped before money has moved between the banks. This makes a difference to you because disputes on credit cards are often resolved much more quickly and efficiently than if you had used a debit card and your bank account.
Using a PayPal account with your credit card is also touted as the most secure option for making and accepting payments online, especially when the sale is a private one via a site such as eBay or Gumtree, and not through a major retailer.