PHOENIX, AZ — Black Friday is just days away and the deals may seem too good to be true, but should you be pulling out your credit card to cover the cost? Better yet, should you be signing up for a new one?
If you are turning to credit, the key is to find a cards with added value. For example, finding a card that offers extended warranties, cash back or low interest rates could offset the expense of getting a new card.
Sara Rathner with Nerdwallet says the Chase Sapphireand Chase Sapphire Reserveare two cards that offer an extra year of protection on top of a manufacture's warranty. Meaning, you may be able to get your money back on certain products, even after the manufacture's warranty expires. They can even help if an item, purchased on the card, doesn't arrive in the mail. Receipts are important and the card could have an annual fee.
Another option is to consider a store card as most offer cashback opportunities. Sara says Amazon, Targetand Walmart are the most popular with 5% cashback on purchases.
If you are looking to spread out the cost, a low interest card could be the best for you.
Sara says the US Bank Visa Platinum is an example of a card that offers zero percent interest for 18 months. But a warning, you need to pay off these cards by the end of the zero interest period of face a big rate.
In the end, Sara says you need to be prepared before you shop; making a decision to open a new credit card at the register is not ideal.
