Purchases You Should Always Make With a Credit Card

There are many myths about credit cards. Some people say you should never use them, while others believe they are the best way to pay for everything. In truth, some purchases are better paid for with a credit card. 

In this article, we will list five of those purchases and explain why it's a good idea to use your credit card for them.

What to Always Pay With a Credit Card

When making major purchases, you should always use your credit card. This is because most credit cards offer some sort of purchase protection. That means that if you buy something and it gets damaged or stolen, you can usually get your money back from the credit card issuer.

Here are some ordinary, everyday purchases you should also consider making with a credit card:

1. Online Shopping

Online shopping is becoming increasingly popular, and it’s not hard to see why. It’s swift and convenient, you can find great deals, and you can do it from the comfort of your home. However, there are also some risks you should be aware of, such as identity theft and fraud.

One way to help protect yourself when shopping online is to use a credit card. Credit cards offer several advantages that make them well-suited for online purchases. For one thing, they provide an extra layer of security against fraud.

Furthermore, many cards offer protection against identity theft. And if you do run into problems with a purchase, you can usually dispute the charges with credit card companies.

2. Airline Tickets

When you book a flight with a credit card, you’ll usually get some extra protection that you wouldn’t if you’d paid with cash or a debit card. 

This is because most credit cards offer some form of travel insurance, meaning that if your flight is canceled or delayed, you may be able to get reimbursed by your credit card company.

Credit cards also offer premium rewards and points, and using them to purchase tickets can help rack up points quickly. And these are not even all of the benefits you can enjoy when booking airfare.

Using a credit card can also help you take advantage of special deals and promotions that airlines offer from time to time. So, next time you're booking a flight, be sure to consider using your credit card. It just might save you some money and help you earn rewards too.

3. Car Rental

Most credit cards offer insurance coverage for rental cars, providing valuable protection in the event of an accident or theft.

In addition, using a credit card can help you avoid costly fees. Some rental companies charge extra for customers who pay with cash, and others require a large deposit that may not be refunded if the car is returned early.

Finally, it can give you peace of mind in knowing that you have a backup if your primary form of payment fails. Whether renting for business or pleasure, a credit card can help make the process smoother and hassle-free.

4. Electronics

These days, it's hard to imagine life without electronics. They have become an essential part of our lives, from smartphones to laptops and everything in between.

This is another area where credit card payments are the best option because most credit cards offer extended warranty protection on electronics purchases. It means that if your new device breaks within the first year or two, you may be able to get a refund or replacement from your credit card company.

In addition, it can help you take advantage of special deals and promotions that electronics stores offer from time to time. So, next time you're in the market for a new gadget, be sure to use your credit card.

5. Medical Bills and Emergencies

There are several good reasons to use credit cards for medical expenses, even if you have to pay off the balance over time.

First of all, credit cards offer a degree of protection against fraud and identity theft. If your medical insurance information is stolen, you could be in trouble for thousands of dollars in fraudulent transactions. However, if you use a credit card, you can dispute any unauthorized charges and avoid financial liability.

Additionally, credit cards can help you take advantage of early payment discounts. Many hospitals and doctors offer a discount for patients who pay their bills in full within 30 days. By using a credit card, you can take advantage of this discount and save money on your medical bills.

By using a credit card, you can get the care you need without delay. If you have to go to the emergency room or undergo an unexpected medical procedure, being able to put the cost on a credit card can make things much easier. 

When to Avoid Using a Credit Card

If you're considering making a large purchase, such as a car or a house, you should avoid using a credit card. In these cases, getting a loan from a bank or other financial institution is usually best, but that will be difficult when you're already carrying debt. 

Another situation in which you should avoid using your card is when you're paying taxes. While you can technically put your taxes on a credit card, it's not a good idea. 

This is because the IRS charges a processing fee for credit card payments, which can add up and make your credit card debt worse.

You should also avoid paying for school tuition this way. 

While it may be tempting to put your tuition on a credit card and pay it off over time, most schools do the same as the IRS - charge a processing fee for credit card payments. This fee can add up, so it's usually best to use another payment method.

Final Thoughts

There are a lot of different opinions about credit card usage. Ultimately, the decision about what to buy with a credit card comes down to your individual financial situation and spending habits.

Did you know that nearly one in two people don’t pay off their credit balances each month? This is a massive problem because it means they are racking up interest charges that add to the cost of their purchases. 

If you decide to use a credit card, be sure to only spend what you can afford to pay back and never go over your credit limit.