Black Friday, the nation’s largest shopping day, is nearly upon us. Holiday shoppers will be descending to their local malls and department stores in search of the perfect gifts for the 2010 holiday season. While many people save up for holiday shopping via Christmas Clubs or other savings accounts, credit cards are really the tool shoppers should be utilizing during the shopping chaos.

Face it – we can all go a little crazy shopping for our loved ones and friends. We also may become so frustrated and overwhelmed just trying to make it to the check out line with something. It is because of the madness of Black Friday that credit cards are almost indispensable for smart shoppers and savvy money folks.

The reason is simply because credit cards offer you protection that cash just can’t. Cash does not have the power to help fix your rushed shopping mistakes or your misfortune when something stops working soon after it’s purchased. Of course, all credit cards differ in terms and conditions so it’s in your best interest to check into the benefits you can get from your specific cards but overall there is a definite benefit to making good use of your credit cards during the holiday shopping season.

Typical Credit Card Protections for the Holiday Shopper

Price Protection

Okay, so imagine yourself on a mission through the mall. Your kids are tired, you have a headache, and you mindlessly select gifts on your list. The next week you are quietly browsing the sales fliers while the kids are asleep and discover the pricey gift you got for your sister has now been dramatically reduced in price. You go back to the store but they refuse to refund you the difference. So what now? Don’t count yourself down and out just yet if you used a credit card for the purchase. Check in with the credit card company and see if they will give you the money back. Many card providers will leave a 60-90 day window for getting the cash difference back from your purchases. This benefit will not apply to any special close-out or discount offers but if you can provide the receipt of purchase as well as proof of the price reduction such as a store ad, you can get your money back. You’re price checking diligence will pay off.

Return Refunding

Stores typically set a time line for accepting returned or exchanged items. If you shopped with a credit card, you may be able to extend that deadline for the return. We all get caught up in the holidays and often forget to head back to the store in time. Now you don’t have to worry about losing out as long as the item you return is still in new condition. The card company will issue a credit to your account. Some card companies will cap how much money you can get back so check with your card issuer for your limits. Interestingly, card companies handle these returns by requesting you send the item back to them directly, they issue the refund and then turn around and sell the item online or through a third-party vendor.

Purchase Protection

There is nothing more annoying than getting your nephew the coolest gift ever, only to find out it fell apart the day after Christmas. For the items that do not come with a warranty, credit cards can offer you protection when the item breaks or has been stolen. Many credit cards will allow for purchases protection to extend for several months after you have made a purchase. They may opt to replace the item you bought, foot the bill for a repair, or even credit the full purchase amount back to your credit card account. Most card companies will put a limit on the amount of reimbursement under there purchase protection terms so check in with them if you have an issue.

Warranty Extension

When we buy certain items, it never fails for the cashier to quickly ramble through their extended warranty spiel. Essentially you pay extra for a supposed extended warranty without first learning more details. By using a credit card, you may already have extended warranty protection which means it’s not necessary to pay above and beyond the purchase price. Every card issuer will have different conditions for extended warranties so never just assume all is well without first checking into and comparing the store’s extended warranty against the protection your credit card company offers.

This is not to say you should use credit cards to go on a hog-wild shopping spree. You will still need to plan out not only your shopping strategies for the early morning shopping extravaganza you also need to create a plan for spending.

• Utilize your Christmas Club or saved holiday cash by keeping it in envelope to be used to pay off your balances in full at the end of your credit card billing cycle.

• Bring a small notebook with you and write the total amount you are allowed to spend. Notate every purchase made and which card is used and keep deducting until you run out of cash. When the money is gone, you should be leaving the mall.

• Sit with the sales fliers and note all the items you want to get on Black Friday or your other shopping days. Instead of running around like a chicken without a head, you’ll have your day mapped out. You’ll stand less of a chance to make mistakes or impulse buys.

• Check in with your credit cards and find out which rewards will benefit you the most. You’ll be able use the cards that will give you the most rewards, whether it be cash, airline miles, or other redeemable points. Make your bigger purchases on the card that will bring the most rewards.

Check your statements/accounts online when you are done. For the next week or so after a heavy shopping period, look online at your account and make sure there are no charges on there that you didn’t make. Fraud is rampant during such times, especially because your cards have been making the rounds. Report any suspicious activity immediately to your credit card company.

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Tags: Shopping, Shopping Indispensable