Best Purchases to Always Make With a Credit Card
Some financial advisors advise consumers to never make a purchase using a credit card and to only do so with cash. Although the underlying philosophy of this advice has some merit, there are numerous advantages for those who responsibly use credit. In fact, skipping using a credit card for some types of purchases could be a mistake because you'd be giving up various protections and advantages.
Electronics and Appliances
Your credit card company might extend the manufacturer's warranty on a dishwasher you purchase from one year to two years. Some credit cards also provide purchase protection against damage and theft. Your card company will repair the item or reimburse you for the purchase, up to a certain amount, if your purchase is damaged or stolen within a specific time frame, typically 90 to 120 days.
Renting a car
You can choose not to purchase the pricey insurance that car rental companies typically charge with some travel-focused credit cards that offer car rental insurance. In some circumstances, this insurance is primary insurance, so you won't even need to contact your own auto insurance provider. Several car rental rewards programmes, which can give access to discounts, free upgrades, and other benefits, are also offered by some cards, along with free enrollment and premium status.
Using a credit card for a car rental can also make it simple to check out when you return the vehicle because you can frequently just leave the vehicle and walk away to get an email receipt.
Buying You May Return
Nobody has any way of knowing with certainty if they'll ever return something they've bought. However, using a credit card to pay for the item is a smart move if you think there's a chance you might want to return it later. The main cause of this is that retailers occasionally refuse to adhere to their return policies. You can typically file a complaint with your credit card company if the merchant refuses to accept a return for whatever reason.
Most of the time, if the credit card company can't persuade the merchant to give in, they'll launch an investigation and refund your money. Naturally, this doesn't apply to instances of fraud or abuse, but for the majority of legitimate transactions, your credit card company will support you.
Shops You Shouldn't Trust
You may occasionally want to purchase a product but have concerns about the seller. This typically occurs with an online storefront, but it might also take the form of a street vendor who uses a mobile credit card terminal. In any case, it's essential that you use a credit card for a transaction like this rather than cash or another form of payment.
You have the right to complain to your credit card company and request a refund if the merchant sells you a subpar item or disappears from existence after you make a purchase. Instead, if you pay in cash, you won't ever see that cash again. A credit card can also shield you from any unauthorised purchases that a dishonest merchant might make with it.
Bills for mobile phones
You will receive phone theft and damage insurance if you pay your cellphone bill with a particular credit card. You can file a claim with your credit card company and receive compensation for the loss, usually up to $600, if your phone is damaged or stolen. This protection typically only applies as long as you keep using your credit card to pay your regular bill. Because phone carriers may charge as much as $15 per month for the same type of coverage, and some may even add a deductible or service fee on top of the monthly insurance cost, this benefit could actually save you money even if you never make a claim.
Event or Concert Tickets
Simply for the benefit of the dispute resolution services offered by credit card companies, it makes sense to use a credit card when purchasing concert or event tickets. Additionally, the right credit card can provide you with extra benefits for purchasing tickets. Some credit cards allow you to purchase event tickets ahead of the general public, giving you priority access. This can be a tremendous advantage if you're looking for the best seats for a popular show. Card companies sometimes also provide extra enhanced event experiences, like VIP parking or seating, entry to meet-and-greets, or access to pre- or post-event parties.
Add-On Categories
The fact that credit card issuers compete for customers has greatly benefited credit card holders. Nowadays, the majority of reward cards provide bonus multipliers in a number of categories, such as three times points on dining and travel or two times points on groceries. The secret to maximising these bonus points is to choose a card that offers benefits for purchases you make regularly.
You should use a card that offers bonus points in those categories if, for instance, you spend a lot of money on groceries and gas. The catch here is obviously that you'll need to resist the urge to overspend in areas where you might not typically spend money, like travel, dining, home improvement, or other common bonus areas.
Online purchasing
When making purchases online, using a credit card can help safeguard you from fraud as well as give you access to extra benefits. Nowadays, a lot of credit card companies reward you for using their shopping portals with everything from discounts to cash back. For instance, if you purchase a Samsung product through a shopping portal, you might be able to earn 4% cash back or 2% back at Macy's. Numerous shopping portals, sometimes even thousands, of stores are accessible. The use of these shopping portals is free for consumers, so if you're going to buy something anyway, you might as well get paid for it.
Airfare
Credit: Wealth pedia
One of the most obvious purchases to make with a credit card is a flight. To begin with, a lot of reward credit cards give extra bonus points for booking flights. However, the majority of credit cards that focus on travel provide numerous extra benefits for buying flights. Some credit cards provide complimentary trip delay or cancellation insurance, and branded cards frequently allow free baggage for flights booked with the card.
In addition to providing insurance for lost luggage, many travel cards also reimburse you for your bags' contents in the event that they are lost. Some cards also grant free access to airport lounges once your journey has started.
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