Why Mozo thinks your credit card might be the best way to pay for Christmas

If you’ve just read the headline, you probably think we’re crazy, but when used responsibly, a credit card can be your saving grace when it comes to taking on Christmas shopping. If you’ve been playing hard to get with your plastic this December, here are our top 3 reasons that might persuade you otherwise.

Your rewards points that are yet to be redeemed

Remember those rewards points you engaged in some serious retail therapy for? Now is the time to put them to good use! Come Christmas time, you can redeem your points for many perks that are the perfect gifts in disguise. For instance, gift cards, retail products from your provider’s rewards store, a free domestic flight for someone special and even some good old cashback to stick in an envelope.

And before you scoff, thinking ‘no one really does that with their points’, a recent survey by Citi found that 38% of rewards card holders will use their reward programs for Christmas gifts, while 64% of women vow to earn as many rewards points possible to put towards their Christmas shopping.

Those other rewards perks that have your back

Many credit cards often come with standard features that can help you when things go wrong with your shopping. For example, if you’ve just purchased an item and seen it advertised elsewhere for a lower price, price protection can save the day. With price protection, you can be refunded the difference between the price you paid and the lower price you’ve seen elsewhere. But this perk does have its limits, as there may be a minimum or maximum price difference you’re able to get back.

Purchase protection insurance is another feature that can turn your Christmas disaster into a Christmas miracle. If you’ve accidentally lost, damaged or had a gift stolen, you’ll be able to make a claim and have the cost of the item covered by your credit card provider. Again, there may be a limit to how much you are able to claim, but it’s typically between $75 - $500.

The beauty of a 0% interest rate credit card

For some Aussies, using their plastic is the only option to get through the holiday season spending. In fact, Mozo’s data recently found that Aussies are predicted to charge a total of $29 million to their credit cards, only to fork out around $309 each in interest and fees within the new year.

However, Mozo Director, Kirsty Lamont encourages Aussies to use alternative measures when tackling the cost of Christmas - but picking up a 0% interest credit card with a $68 application fee topped the list.

“Choosing the wrong credit card can add 25% to the cost of Christmas, but a 0% purchase rate credit card costs $68 to repay the festive spend, providing the balance is paid off before the purchase rate period expires,” she said.

Ready to grab an interest-free credit card to help cover the cost of Christmas? Check out our interest-free credit card comparison tool and find your plastic match today.