Using your credit cards can be a good thing. Yep, you read that correctly. While we are known for our anti-credit card stance (and for good reason), we do recognize the benefits to using one correctly. From fraud protection to extended warranties, utilizing your card has its perks. Here are a few purchases to consider putting on your card, as long as you pay them off promptly. Let’s get started.
Electronics and Appliances
Whether you are looking to upgrade your stove to a stainless steel gas range or your TV to a bigger screen, purchasing these big ticket items with a credit card can be more beneficial than purchasing them with cash. For instance, many credit card companies offer complimentary extended warranty programs for electronics and appliances, which can help if something happens to your product. Depending on the card, you might even have purchase protection. This can cover anything from loss and theft to price matching. When spending large sums of money on big ticket items, these perks can definitely come in handy.
Speaking of special perks, many credit card issuers will provide extra benefits like travel insurance, trip cancelation service, emergency benefits, and rental car insurance at no additional cost. Those benefits offer a peace of mind you wouldn’t get with another payment option. Just think if you had to cancel your trip to Europe at the last minute. Plus, many card companies allow you earn rewards for your travel. Frequent flyer miles, free hotel stays, discounts and vacation packages are all some of the incentives offered through credit card issuers.
Traveling abroad is always an exciting adventure. But you don’t want your finances to be part of that adventure, especially considering the amount of fraud that happens overseas. Many credit card issuers will offer fraud protection along with an exemption from paying foreign transaction fees. When considering those fees can be up to 3 percent, there’s a pretty good incentive to use your credit cards abroad.
One of the most important reasons to have credit cards and a good credit score is for those unforeseen emergencies that arise from time to time. Whether your car breaks down or a pipe bursts in your home leaving tons of water damage in its wake, having the credit limit to help you out of the bind is a good thing. Just be sure you always pay off your cards as quickly as possible, or you will end up with more debt than you can handle in interest fees.
The Small Stuff
From gas to your daily latte, putting some of the smaller purchases on your credit card can benefit you more than you would expect. Depending on the card, you could earn cashback rewards for your purchases. For example, during certain times of the year, Chase Freedom cardholders can earn 5 percent cash back on all of their gas purchases. At other times, they are rewarded for shopping at Amazon.com or coffee shops. Just remember to always pay these smaller purchases off at the end of the month.
Now that you know what to put on your card, it’s time to discuss what NOT to put on your card. Check out our article detailing what you should never, ever put on your credit cards. It might come in handy.