While you will have various ways of paying for the new clothes you buy, such as using cash, a debit card, or even an online cryptocurrency payment, it can often make more sense to use a credit card for clothing purchases.
Here are just five great reasons why using your credit card to buy clothes is the best option.
1. You Could Gain Reward Points
When you use a credit card that offers reward points for spending, you can renew those points to spend on more clothes or other purchases.
Many reward credit cards provide bonus points when you buy specific products like clothes, groceries, or gasoline.
You can also find co-branded cards that partner with establishments like clothing retailers and hotel chains. This means that you can leverage your everyday spending and gain valuable rewards day in and day out.
2. You Could Get Cash Back Rewards
Several credit card companies provide cash-back credit cards, which can be very handy when purchasing clothing.
You simply use your card to make a purchase and then get a percentage rebated in cash for selected purchases.
The best cash-back credit cards are those that have minimal fees and low-interest rates while offering high reward rates.
For example, when you are approved for a SoFi credit card, you can earn a whopping 3% cash-back. There is also no annual fee to pay.
Different credit card providers will have varying requirements to get a credit card, and this is usually on the basis of your income. Generally speaking, you’ll be able to sign up for cards with more enticing rewards if you have a high income.
3. You Could Access One-Time Bonuses
When you get a new credit card, you could access an initial one-time bonus, which means you can have additional money to spend on your clothing purchases, such as these twenty clothing items that are hot right now.
Typically, you will need to have a good credit score to be approved for a one-time bonus credit card, though.
Once you are approved, you could gain bonuses worth £150 or more in exchange for spending certain amounts during the first several months after you have opened your account.
4. Credit Cards Provide Additional Security
If your debit card is stolen, the thief can steal money from your bank account instantly and legitimate purchases that you have scheduled could bounce. In turn, when insufficient funds are triggered in those situations, it could affect your credit rating.
On the other hand, when you pay for clothing purchases (and other items) with your credit card, you can avoid such problems because you will not actually be out of money if your card is stolen.
You just need to notify your credit card company and you typically will not have to pay for transactions that you did not make or go into the red when payments are due.
Your credit card company will resolve the matter.
Many credit card companies provide zero liability coverage for unauthorized purchases.
5. With a Credit Card, You Get a Grace Period
Credit cards are also better than debit cards because when you make a clothing purchase with your debit card, the money leaves your account straight away. With a credit card purchase, your money stays in your account until you pay the credit card bill.
Therefore, you gain a grace period by using a credit card, which could be very beneficial.
After all, your money will stay in your account for longer, so you can earn interest on that money.
And when you regularly pay with a credit card, you will not have to watch your bank account balance so closely.
