This year many people are likely to need credit in order to fund the cost of Christmas, as more and more people have become increasingly reliant on credit to pay for things following a year that has been a real financial struggle for most.Amongst the various forms of credit that are commonly used over the Christmas and New Year period are store cards and credit cards.Putting the cost of Christmas on plastic means that you need to find out whether the credit card or the store card is going best match your needs, so make sure you do a little research and weigh up the pros and cons of each.

The majority of experts in the finance industry have said that using a credit card is a much better option than using a store card, and there are a number of reasons behind their thinking.When you use a credit card instead of a store card you can enjoy a range of benefits, but you should make sure that you are using the right credit card based on your needs and spending habits.

Most retailers spend time pushing store cards at this time of year, as they know that customers will be looking for ways to pay for Christmas goods, and these stores make a fortune off these store cards.Customers that use store cards will be subjected to a very high rate of interest, and this means that if you spread the repayments on your card balance you will end up paying a fortune in interest, which means that you will have paid way over the odds for the purchases that you make.

You will find that many retailers will offer various incentives such as discounts when they try to get you to sign up for a store card, but you need to bear in mind that you will end up paying far more than this in interest, which means the discount is worthless.Another downside to store cards is that you are restricted with regards to where you can use them, as they can only be used at a certain retailer or chain.

When it comes to credit cards many people find themselves falling into high levels of debt through the use of these cards, and some cards charge high rates of interest, although not as high as most store cards. What you can do, however, is opt for a 0% purchase card, where you can spread your repayments over a longer period and still not have to pay any interest.One major benefit of using a credit card rather than a store card is that you can use credit cards to make purchases from any retailer that accepts credit card payments rather than from certain shops and retailers that are linked to a store card.If you plan to repay your balance in full within the interest free period you can even opt for a rewards based or cash back credit card.