The Gifts That Keep On Giving Back
The holidays are almost here. Which means, for a lot of shoppers, it’s time to pull out the plastic and get busy.
Yes, Black Friday, Cyber Monday and the season where finding a parking space at the mall is like hitting the Lotto is upon us. That means finding the right gifts for loved ones, special dinners with your beloved friends, and generally a whole lot of expenses that don’t normally crop up in a regular month.
The temptation to overspend is all around us. After all, what’s more American than pulling out a card and bravely charging into the shopping scrum? Tiny tots with their eyes all aglow and business colleagues who are also in that state at the bar demand that you spend. But if you’re feeling just a tad guilty over that, just be comforted in the knowledge that you’re not alone.
Country Financial is an group of insurance and financial companies that puts out a blog called the Country Financial Security Index. Its latest survey found that 46 percent of Americans will use credit cards to finance their expenses during this season of giving.
Of course, the season to be jolly is followed by the financial hangover that arrives in the months where the bill arrives. And for a good quarter of consumers, it can be a whopper. About 52 percent of those surveyed told the Country Financial survey that they’re willing to take on some debt, while 26 percent will run up the bill to more than $500.
While debt is not a good thing, there is some good news to counterbalance the looming possibility of your payments. Your credit card can actually be leveraged to get the same level of deal that you would get by standing in line and fighting the crowds on Black Friday without having to stand in line on Black Friday.
That’s because some credit cards offer price protection. That will reimburse the customer on the price difference of an item that goes on sale after it is purchased using their plastic. The time limits and conditions vary, and you have to read the fine print to make sure any specific purchase is covered, but a lot of cards will prove their merit by slicing the price on your gifts. That means that stores offering tremendous deals later in the holiday season, month-long Black Friday discounts, and hidden, one-day deals that your sharp eyes spot can wind up saving you a tremendous amount of money if you take advantage of certain card programs.
SECOND CHANCES TO SCORE
Citi is one such card offering a potential discount. It has a “Price Rewind Program” that can refund up to $500 per item or $2,500 per year if used wisely. The good news: the program will apply to any lingering Black Friday or upcoming Cyber Monday deals. Citi requires that you register your purchased item online and keep all receipts. They then track that item for 60 days on 500 online sites. If the price drops, you can apply to get back the difference!
The company claims that it found a lower price on 40 percent of registered products, resulting in more than $5 million in customer reimbursements during the first nine months of this year. That’s $5 million on items that likely would be purchased anyway, so it is essentially found money.
Chase Bank has an even better deal – there is no limit to how many times you can file a price protection claim, but it is capped at $2,500 per 12-month period. You can get back up to $500 per item on your purchases. The caveat is that some of the most outrageous deals are limited, so if you find a doorbuster price designed to simply lure the mobs, you may get back just $50. Still, that’s half a hundred in cold cash for just a little effort.
Chase requires you to fill out a claim form and file the original receipt, the credit card statement and any advertisement that shows the lower price, so there are some hoops to jump through. But a well-organized shopper can do this in an hour or less, which means you’re making $50 an hour.
MASTERCARD, DISCOVER ALSO DEALING
Your friends at MasterCard also have a price reimbursement plan. This one allows for a maximum of $250 per claim, with four claims per year permitted. The process also requires some hoop-jumping, as you have to mail in a claim form, the advertisement, a credit card statement and the original receipt.
Finally, Discover, the original “card that pays you back,” allows you to submit a claim within 90 days if you find a lower price on something you purchased. Discover reimburses up to $500, with an annual cap at $2,500. Call the customer service line to file a claim, and then you will have to go online and submit a claim form, credit card statement showing the purchase, ad showing the price, and the receipt from the purchase.
If you get good enough at the reimbursement game, you can even pimp yourself out finding reimbursements for others in your family, circle of friends and general acquaintances, making even more money as an intermediary. All of them will welcome the notion that they can legally get money back simply by using the tools they already have available.
So put your card to work making money for you this season. It’s a great way to take advantage of a service to smooth out your financial obligations, and all it takes is a little time.