If you want to be approved for the best loans and to get the best interest rates, then you have to have a very good credit score. And if you want a good credit score, you have to use your credit card. For many people, this is the main reason to switch from cash to plastic. But using your credit card comes with both pros and cons. If you’re not careful, instead of improving your score, you can invite debt into your life and that will cause you a lot of pain. To avoid such situations, you need to know when to use your credit card and when to use cash. The purpose of this article is to help you avoid credit card problems by showing you what purchases you should make with your credit card.
Traveling
It’s no secret that credit cards can really come in handy when traveling. Many credit card companies offer their customers assistance with travel, either in the form of cancellation or trip interruption coverage, coverage for lost luggage, medical coverage, the well-known ticket discounts and much more. These are all great benefits and can actually help you save money while on vacation.
Car rentals
Many credit card companies also offer their clients free car insurance. It might not be as thorough as the insurance you can purchase through the rental company, but most of the time it’s enough. Again, this feature can save you money.
Online purchases
Some would say that credit cards were invented for online purchases. Or maybe it’s the other way around. The thing is, buying stuff online, with your credit card, can save you a lot of time and even a lot of money, if you stumble upon some great deals. However, you still need to make sure that the sites you visit are secure.
Tickets at events
A lot of credit card companies have partnerships with numerous event promoters and venues. Your credit card can help you purchase tickets for big events in advance and even at discount prices. Not to mention that you will have the opportunity to go to exclusive events, only offered to cardholders.
Making purchases in foreign countries
If you’re traveling to a foreign country, taking your credit card with you is definitely a good idea. It will help you pay for stuff without you having to take a lot of cash with you. And you won’t have to spend time in currency exchange offices. Most importantly, if your credit card gets stolen, you won’t lose that much, especially if you report the theft in time. In fact, this will only cost you $50 at most, the price of replacing the card.
Paying your cellphone bills
Maybe you did not know this, but, if you pay your cellphone bills with your credit card, your credit card company may offer you some coverage in case you phone is lost, damaged or stolen. All you need to do is to pay your bills on time.
Buying electronics and other appliances
You should always get your card with you when buying big-ticket electronic items. It’s a great way to get those points that can help you obtain those nice discounts and gifts that credit card companies offer. But, most importantly, you should use your credit card when making such purchases because it offers you an extended warranty, often doubling the length of time the manufacturer provides.
Final word
A credit card can be very useful and it can offer you a lot of perks. But you should always be aware that it can also hurt you. Remember that you have to be smart and responsible when shopping.
