When it comes to spending, using the cash burning a hole in your pocket is not always your best option.
You may have learned somewhere along the line to only spend with cash or debit, and avoid using credit. However, that’s not always the best advice.
There are certain items that you should always charge on a credit card, assuming you’ve followed some tips to save cash to pay it off quickly. To find out more about how to use a credit card wisely, read on…
Why Use a Credit Card for Purchases?
It’s understandable to not want to use credit if you have the cash on hand. However, there are many reasons to use your Standard Chartered credit card for a variety of purchases, as long as you can afford to pay it off before interest accrues.
For example, credit card benefits include travel rewards or cashback, and they have fraud prevention tools in place too so you don’t pay for things someone else ordered.
Other benefits of buying on a credit card include easier refunds if needed, or extending the warranty of certain items. A credit card can even help you more easily replace a stolen item.
Here are a few things you should charge.
1. Major Appliances
This one might seem counterintuitive because of the relatively high price, but if you need a new fridge or stove, then a credit card might be your best option.
You may get a better warranty on the appliance, and it can also pay to keep an eye on the price for the next month or so. Some credit card benefits include price protection, which means refunding the difference if the price drops.
This is not to say that you should book a world tour on your credit card if you don’t have the salary to back it up. However, it makes sense to use your credit card while traveling (from the flight to the meals), because doing so can help you earn rewards to keep you traveling in the future.
Credit cards can also cover automobile rental insurance, which can add up to a big expense if you’re using the vehicle for a couple of weeks.
3. Home Improvements
Did you know you can dispute a charge from a contractor, even if they’re done the project and you’ve already paid them with your credit card?
It’s true. If you find that the home improvement you had done isn’t so much of an improvement after the contractor clears out, you can call your credit card company to recover your payments. This is known in the credit industry as a chargeback.
Learn How To Use a Credit Card the Smart Way
If you have credit cards, you need to exercise discipline. That means paying the minimum on time to avoid damaging your credit, and knowing you have (or will have) the cash to pay off the balance when you want.
However, buying certain things on your credit card can earn you bonuses and save you headaches down the road that cash can’t offer. When you truly learn how to use a credit card, it can be a rewarding experience!
In the meantime, take the 52-week challenge to hold on to even more of your hard-earned money.