18 Things You Should Use Your Credit Card For

Credit cards can be powerful financial tools if used wisely, there are many things you should use your credit card for. They offer various benefits including rewards, security and accommodation. However, knowing when to use your credit card is just as important as knowing when to stay away from it. In this article, we will examine the main things you should use your credit card for and how to maximize its benefits without any hassle.

Introduction

Credit cards are more than simple pieces of plastic. They can offer protection, rewards and benefits that cash or debit cards often don’t. From everyday expenses to special purchases, knowing when and how to use your credit card can help you maximize these benefits while maintaining financial health.

All things considered, credit cards can also be dangerous if used in an unreliable manner. Interest charges can add up quickly, making it important to understand which charges you should and should avoid on your card. What do we think of the best things you should use your MasterCard for to get the most out of it?

Why Use a Credit Card for Certain Purchases?

• Convenience and Safety

The main reason to use a credit card is the convenience of carrying only one card instead of cash or checks. Credit cards offer a layer of security — if your card is lost or stolen, you can cancel it immediately without losing any money. In addition, many credit card companies offer fraud detection and protection, giving you peace of mind when making purchases.

• Rewards and Cashback Opportunities

Most credit cards offer rewards programs that give you points, miles or cash back for every dollar you spend. This means you can earn rewards on things you’re buying anyway. When used correctly, these rewards can accumulate into significant savings or valuable benefits such as travel or gift cards.

• Purchase Protection and Extended Warranties

Many credit cards offer purchase protection, meaning if an item you buy is lost, stolen, or damaged within a certain time frame, your credit card company may cover the cost of repair or replacement. Some cards also extend the manufacturer’s warranty on products, offering additional protection.

Everyday Purchases You Should Charge to Your Credit Card

1. Groceries and Household Items

Groceries are one of the best things you should use your credit card for to prioritize for smart budgeting. Using your credit card for groceries is a great way to earn rewards. Many cards offer bonus points or cash back for supermarket purchases. Be sure to pay off the balance in full each month to avoid interest charges.

2. Gas and Transportation

Gas and public transportation are other areas where you can earn rewards. Some credit cards offer extra points or cash back for filling up your tank or buying a transit pass.

3. Subscriptions and Recurring Payments

Keeping your subscriptions, like streaming services or gym memberships, on your credit card ensures you never miss a payment. Plus, these regular charges can help generate points or cashback without much effort.

Travel-Related Purchases Best Made with Credit Cards

4. Airline Tickets and Hotel Stays

Tickets are one of the top things you should use your credit card for. Credit cards are great for booking airline tickets and hotel stays. Not only can you earn miles or points for these purchases, but many travel rewards cards also offer benefits like free checked bags, priority boarding, or room upgrades.

5. Car Rentals

When renting a car, using your credit card can save you money on rental insurance. Many credit cards offer rental car insurance as a benefit, which provides coverage for collision damage.

6. Travel Insurance and Emergency Assistance

Some premium credit cards offer built-in travel insurance, which can cover trip cancellations, lost luggage, and medical emergencies while traveling. These facilities can save you from huge expenses during your trip.

Online Shopping and E-commerce Transactions

7. Fraud Protection for Online Purchases

Credit cards are safer than debit cards for online shopping because they offer better fraud protection. If your card number is compromised, you are typically not liable for unauthorized charges, and getting your money back is easier. Here are 3 Reasons why paying with a credit card is safer than a debit card.

8. Ease of Disputing Charges

If you receive a defective product or one that doesn’t arrive at all, credit card companies usually offer an easy-to-navigate dispute process. This gives you an extra layer of protection against fraudulent sellers or mistakes.

Large Purchases That Can Benefit from Credit Cards

9. Electronics and Gadgets

This is also one of the best things you should use your credit card for. When buying expensive electronics, using a credit card with purchase protection or an extended warranty can be a smart choice. These benefits give you peace of mind if something goes wrong with your new gadget.

10. Furniture and Appliances

Larger items like furniture and appliances are great for using credit cards because of the rewards and security. In addition, many credit cards offer zero-interest promotions, allowing you to pay off large purchases over time without interest.

Special Offers, Discounts, and Exclusive Deals

11. Holiday Shopping

Many credit cards partner with retailers to offer special discounts or bonus points during the holidays. Avail these offers to stretch your budget further.

12. Loyalty Program Discounts

If you’re part of a store’s loyalty program, using your credit card can lead to additional savings. Rewards from your credit card and store loyalty programs can double your savings.

Building Credit Through Smart Credit Card Usage

13. Improving Credit Score

Using your credit card regularly and paying off balances on time helps boost your credit score. A strong credit score can open up better financial opportunities such as lower interest rates on loans or mortgages. How to Improve Your Credit Score Fast?

14. Long-term Benefits of Good Credit

Over time, responsible credit card use can lead to an excellent credit score, which will be beneficial if you ever need to apply for a car loan, mortgage, or even rent an apartment. Lenders look at your credit history to determine your creditworthiness.

Emergency Expenses

15. Medical Bills

Sometimes medical expenses can worry you. In an emergency, you may not have time to figure out the best payment method. Using your credit card can give you flexibility, allowing you to manage spending over time and avoid interest by paying off early.

16. Car Repairs

Unexpected car repairs can cause financial stress. Your credit card can serve as a temporary solution, helping you cover costs and providing rewards in the process.

Times You Should Avoid Using Your Credit Card

17. Cash Advances

Using your credit card for a cash advance is generally a bad idea. The fees and high interest rates associated with cash advances can lead to significant debt.

18. High-Interest Purchases

If you plan to carry a balance, avoid using your credit card for purchases you can’t pay off quickly. Higher interest rates will make these purchases more expensive in the long run.

If this article was useful to you, you may also like this one: 6 Things You Should Rent Instead of Buy

Conclusion

A credit card, when used responsibly, can be a valuable financial tool, offering convenience, rewards, and security. By charging your card for everyday expenses, travel-related purchases, and larger items, you can take advantage while building your credit. However, it is important to avoid unnecessary debt and use your card wisely. Stick to purchases you can pay off in full each month, and you’ll enjoy all the benefits without the financial burden. Write a list of “Things you should use your credit card for” and place it somewhere visible so you won’t forget.

7 Things You Should Always Keep Private

FAQs

• How can I maximize credit card rewards?

You can maximize rewards by using your card for everyday purchases, paying off your balance in full each month, and taking advantage of bonus categories like groceries, travel, or gas.

• Is it safe to use a credit card for every purchase?

Yes, it’s generally safe to use a credit card for most purchases, especially because credit cards offer fraud protection, and many companies monitor suspicious activity. However, it is important to be conscious of your expenses and make sure you can pay off the balance every month to avoid accumulating debt.

• Can I use my credit card to pay bills?

Of course! Many credit cards allow you to pay utility bills, insurance premiums, and even rent. However, check to see if your bill provider charges a fee for credit card payments, as this may offset the rewards or cashback you’ve earned.

• What are the best types of purchases to make with a credit card?

The best types of purchases include everyday expenses like groceries, gas and subscriptions, as well as expenses related to travel, online shopping and big-ticket items like electronics or furniture. These allow you to earn rewards and take advantage of benefits like purchase protection and extended warranty.

• Should I use a credit card for large or small purchases?

Both large and small purchases can be ideal for using a credit card. Smaller purchases can help you earn consistent rewards, while larger purchases often benefit from protections like extended warranties or purchase insurance. Just make sure you can pay off the balance in full to avoid interest charges.

• What happens if I miss a credit card payment?

Non-payment can result in late fees and interest charges, and can also negatively impact your credit score. If you realize that you have missed a payment, try to pay it as soon as possible to minimize the damage. Setting up automatic payments or payment reminders can help you avoid missing future payments.