A Reddit user recently posited that it’s better to use a credit card to make purchases than cash or debit cards. With a credit card, the poster wrote, you can enjoy cash back or rewards, which you don’t get with cash or debit cards.
Respondents were quick to point out that credit card usage isn’t so cut and dry for everyone. Sure, using a credit card works well for people who pay off the balance in full each month, but not everyone does that. And if they don’t, they might have to face interest and fees.
As we approach the spendy holiday shopping season, shoppers have to decide how to pay for their purchases. NerdWallet’s 2025 Holiday Spending Report found that nearly three-quarters of 2025 holiday shoppers (74%) plan to use credit cards for at least part of their gift shopping this year, while 64% said they would use cash, checks or debit cards.
Additionally, 29% said they would use money from savings, 18% cited buy now, pay later services and 10% said they would use a cash advance app.
We asked a couple money experts: Is it better to make holiday purchases with a credit card, cash or some other method?
Evaluate credit card offers with care
Credit cards can be a helpful way to pay, as long as you’re responsible with them.
Make sure you understand the details of the cards you’re using, says Lucas Wennersten, a certified financial planner and founder of 49th Parallel Wealth Management in Scottsdale, Arizona.
Some credit cards, for example, offer a period of 0% financing. “That’s a good option,” he says, because it allows you to spread out a big expense over multiple payments without paying extra.
As long as you make the minimum payments during that introductory period and then pay off the balance before it ends, you can safely use the credit card without accruing interest, he adds.
But once that introductory period ends, the interest can add up quickly.
That’s why he says shoppers need to manage their credit cards and payments diligently.
Carefully managed credit cards can net you extras just for paying — like points, rewards and cash back.
But remember: The value of rewards is negated if you can’t pay off the card in full each month.
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BNPL is a popular payment method, but financial experts urge shoppers to use it with caution.
Carl Goodin, CFP and president of Financial Planning Associates in Ellisville, Missouri, says that while paying off a purchase in installments over several months may be better than incurring debt with interest, it’s also risky.
It can be especially dicey if you find yourself managing more than one BNPL purchase.
You might find yourself overwhelmed with BNPL payments coming due at the same time and even unable to make all the payments, which can trigger additional fees and interest. Much like with a 0% APR window on a credit card, you must take care to pay off the balance before the deadline.
Goodin suggests managing your cash flow so you’re not spending more money than you currently have in savings.
Setting money aside for holiday expenses months in advance can alleviate the strain on your December budget. It’s a strategy to consider for next year.
Money saved is yours to spend — via cash, check or debit card — without worry about owing any interest or fees, Goodin says. (A debit card pulls the money directly from your checking account, essentially acting like cash.)
“If you have a spending plan that you developed beforehand that says you can spend X amount, then you won’t jeopardize your higher priorities and long-term objectives,” he adds.
Still, Goodin says every plan needs some flexibility to work. He encourages people to build a cushion into their spending plan so they have room for enjoyment this holiday season, too.
That flexibility will make it easier to stick with the plan all season long.
Reddit is an online forum where users share their thoughts in “threads” on various topics. The popular site includes plenty of discussion on financial subjects like payment methods, so we sifted through Reddit forums to get a pulse check. People post anonymously, so we cannot confirm their individual experiences or circumstances.
