In our last blog, we provided a couple of instances when it’s best to use a credit card to make purchases. But, as you can imagine, there are several more times when credit card usage is practically necessary. Yesterday, we mentioned that online purchases and travel plans are two types of expenses that are best paid for with credit cards. Insurances and protection plans are the main reasons why.
“Aside from the fact that you can\’t exactly hand a website a stack of $20 bills, credit cards provide more purchase and fraud protection than debit cards,” write Libby Kane and Skye Gould of BusinessInsider.com, “Knowing that most of our online information may be subject to hackers, a little protection is a good thing.” But what other types of purchases call for credit card usage?
Here are two more:
1. Big ticket items. Our last blog pointed out that some shoppers have fears about using credit cards because they have been known to put people in debt. Of course, if you’re spending wildly on items that you can’t afford, you’re only asking for financial trouble. However, in some cases, making big ticket purchases is necessary. If you are in need of some assistance in affording expensive purchases, a credit card can certainly help you.
On TheSimpleDollar.com, Ellen Gans admits that “it may feel a bit risky to throw that big-screen television on your credit card, but it actually could be the smart way to go, according to experts. Here’s why: most credit card companies offer certain protections that may come in handy with large purchases. These include fraud protection, as well as the ability to dispute the charge if an error is made. Some credit cards even offer automatic extended warranties on certain purchases.”
Kathleen Elkins and Mike Nudelman of BusinessInsider.com share the same beliefs. They point to the fact that purchase protection becomes an even bigger benefit when the item being protected is very expensive. “If you’re in the market for a new washing machine or laptop, go with credit,” they insist, “The purchase protection will come in handy if something ever goes wrong with the item.”
2. Monthly bills. For the most part, there is no way around bills. Most of us have monthly bills for electricity, water, cell phones, internet use and car insurance among other life requirements. Why not use your credit card to pay for them all since they’re inevitable expenses? You might as well collect those reward points for charges that you’re going to have to endure anyways. Gans advocates this practice.
“You may want to see if your gym membership, cable, cell phone bills, or utilities can be placed on a credit card; in some cases, you may even be able to schedule automatic monthly payments,” she advises, “This not only helps with budgeting and staying up to date on payments, but it can carry the same benefits as described in the rent section above. As always, this option works best if you are a rock star budgeter who plans to pay off the full balance each month.”
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