Top 5 Purchases You Need To Make With Your Credit Card

Credit cards have their share of pitfalls, but they also come with a horde of benefits that kind of negates the downsides. With credit cards you can also save more on your purchases.

When it comes to online shopping, credit cards offer more security than debit cards.  So, if you are planning to use your credit card to make purchases online or offline, here are some tips for you that might help bolster your savings.

1. Airline Tickets and Travel Expenses

Though you can pay for your flight tickets and travel expenses from your savings account, it is wise to use your card to pay for these transactions. Most travel credit cards offer complimentary travel insurance, which would cover any loss or damage during your travel. The insurance would cover travel inconveniences, such as delayed flights, loss of baggage, and missed flight connections.

At times, you may not need to take up a standalone policy if the complementary insurance can take care of all your needs while travelling. You will also earn air miles on your card expenses that can be accumulated to be redeemed for a free trip.

Apart from this, travel cards also offer exclusive discounts on hotel room bookings locally and overseas. You can enjoy multiple deals on dining, shopping, and other travel expenses.

Benefits:

• Most of the travel cards come with travel insurance.
• Get exclusive deals and offers on your travel, including access to airport lounges, hotel discounts, to name a few.
• Earn air miles that will qualify you for further travel-related discounts and perks.

2. Electronic Household Appliances

You can pay for appliances, such as refrigerators,washers, and television sets using your credit card. Most cards will earn you rewards points or cashback for such purchases. But more important than that, you will get extended warranty on such goods. This warranty would be an extension to the manufacturer’s warranty.  

American Express offers this facility on all their cards, whereas Visa and Mastercard offer this on most of their cards. So, when you encounter any damages or repairs beyond the manufacturer’s warranty period, you can save a lot of money with the extended card warranty. If you do not want to incur a huge charge on your card, you can always purchase the product and repay the full amount within the available interest-free period.

Benefits:

• Get an extended warranty on household appliances.
• Earn points or cashback on your purchases.
• Get an interest-free period to repay the full amount.

3. Online Purchases

Though you can make online purchases with your debit card, a credit card would be more useful and safe. Most online transactions are secure and safe, but there is always a risk of identity theft while using the internet.

Since your debit card is linked to your savings account, cyber hackers can access all your banking information with your debit card details. This risk can be avoided with a credit card. An added advantage is that when you report fraud or unauthorised transactions on your credit card, you are not liable to pay for such transactions. This facility is not available on a debit card.

Benefits:

• Prevent unauthorised access to your banking information by using a credit card.
• Enjoy no liability for fraudulent transactions on credit card when you report the activity.
• Credit card payment portals are quite safe and secure for online transactions.

4. Overseas Purchases

Use your credit card overseas to get purchase protection facility. You do not have to carry too much cash with you when you are travelling or sightseeing in a foreign country. In case you fear of losing you card, you can always get your it blocked. The best part is that you also get to earn rewards points or cashback for your overseas purchases.

You need to remember that all outlets in foreign countries do not accept debit cards. You may also find it difficult to withdraw cash for any urgent or emergency situation. Most merchant outlets would accept a credit card, though. It is easy and convenient to pay for any overseas expenses and purchases with a credit card.

Benefits:

• Utilise the purchase protection facility available on credit cards.
• Get an extended warranty on goods and items purchased overseas.
• Earn rewards points or cashback on your purchases.

5. Bill Payments

It is better to use your card for any recurring monthly bill payments. It could be for mobile bill payments, utility bills, cable bills, and even gym memberships. You can setup standing instructions where you can ensure your payments are done on time. You don’t have to remember each and every bill every month. You can always use your card statements to keep track of your bill payments.

At the same time, if you are not able to unsubscribe from any services despite various reminders, you can always stop the payments through the card. Some cards even offer rewards points or cashback for paying utility bills. In such cases, you can reap maximum benefits of your card.

Benefits:

• Pay your bills on time.
• Stop any unnecessary services by blocking the payment from your card.
• Earn points or cashback on your bill payments.

Use Your Credit Card Wisely

All the transactions that we have discussed can be done by other means, but a credit card works out as the best option. It will meet your needs as well as reward you with other added benefits. Most cards offer promotions and deals in multiple categories. If you come across a deal in your preferred category, you can always use it to the maximum.

At the same time, remember to use your card wisely. It is equally important to know the interest rates and other associated charges. There is no point in incurring extra expenses just to get some benefits out of your card.

Pay your bills on time to avoid late payment charges or extra interest. Choose a suitable credit card based on your spending needs and preference. Bbazaar.my has information on all types of credit cards for your convenience. Compare multiple quotes before choosing a suitable card.