When you have a credit card, you must use it for transactions that are best done with a credit card. There are some transactions that offer extra security and offers perks. Though it is easier to pay with cash, it won’t offer any perks. The following are the list of things that you should pay for with your credit card to avail rewards, warranties, etc.
You don’t always have a big wad of cash lying around to buy heavy-duty, expensive items. Carrying a huge amount of cash is not safe nor convenient. When you choose to pay with your credit card, you get a free purchase protection plan which protects your items against damage or theft. Sometimes, you also get extended warranty on the product.
There are credit cards that offer discounts, rebates, reward points when you pay your utility bills. It is convenient to pay off the utility bills with your credit card. You can also give a standing instruction or opt for an auto-debit facility. This ensures that you will never miss your payments and you will earn rewards, discounts, and rebates. Since your utility bills are recurring, you can easily accumulate more reward points.
When you book your flight tickets with your credit card, you get free travel insurance. You also get travel inconvenience benefits. You can claim for delayed flights, lost baggage, losing accommodation bookings, etc. with your travel insurance.
You can use your credit card to pay for online purchases as you get protection from fraud. Using your debit card and paying through online banking is safer, but you may not get your money back in case of fraud. When you use a credit card and it has been fraudulently used, your liability is limited if you immediately report the fraud.
Most credit card companies have a tie-up with some merchants to offer you 0% installments. You can buy a quality electronic item with affordable installment. This ensures that your savings are intact and you need not make chunky withdrawals. You will also get extended warranty and purchase protection. You may also get refunds on the items that don’t perform as promised.
Buy your concert and event tickets
When you buy any concert or event ticket, you get refunds if the event or concert is cancelled. Sometimes, you also get special discounts, booking fee waivers, access to early-bird tickets, free ticket delivery, etc. when you buy the ticket with your credit card.
Buy tax deductible items
You get a hard or soft copy of your credit card bills. When you pay your tax deductible items with your credit card, you can easily track them. You can make donations, pay for your insurance, etc. with your credit card.
It is best to use your credit card for overseas purchases as you get better fraud protection. The foreign currency transaction fee is low. Most of the credit card companies offer good rewards for overseas spend.
Most people often stay away from using their credit cards as they fear that they will accumulate a huge debt. But, if you use your credit card wisely, you can add more value and protect the items you purchased with the credit card. But, you have to remember that you must only charge items that you can afford to pay back. There are credit cards that are tailored for every spending habit. Choose a credit card that best suits your spending habits.