What items should I buy with a credit card?
Quick insights
- Some cardmembers consider their credit card rewards, benefits and security features as they decide when or if they should use a credit card.
- Many rewards credit cards come with travel and purchase protections, and because of this, cardmembers may use a credit card for a purchase in certain situations.
- You might be able to get these protections when you rent a car, pay for eligible travel expenses, electronics and more with your credit card.
There can be many benefits to using a credit card. Credit cards can offer a convenient payment option that may help you build credit, but they may not always be the right choice for every purchase. So, are there certain purchases to consider putting on a credit card?
Depending on which type of credit card you have, using your credit card for some of the following purchases could help you get consumer protections, discounts and more.
What to use credit cards for
What to use a credit card for depends on a variety of factors, including whether your card comes with rewards and cardmember benefits. Some cardmembers may choose to familiarize themselves with these offerings, which could help them feel they are making a more informed choice about when to use the card.
You may already know how a rewards credit card works, but you may not know about credit card benefits. For example, you may find that any time you make an eligible purchase, you are covered by certain protections. If you’re making a particularly big or important purchase, you may find more peace of mind using a credit card with this benefit. (Check your credit card’s Guide to Benefits to see exact details of any protections your card may have.)
Keep in mind that any remaining unpaid balance on your statement at the end of your billing cycle will accrue interest charges.
Travel purchases
Putting certain travel expenses on a credit card could help you get reimbursed in the event that your trip doesn’t go as planned. Your credit card could come with benefits that may provide compensation if your trip is cancelled or interrupted for eligible reasons. A trip cancellation and interruption benefit may reimburse you for any non-refundable prepaid travel expenses that you purchased with the eligible credit card.
If you have a travel rewards card, you may use it to pay for a trip to earn points or cash back.
Car rentals
You usually need a credit card to pay for a car rental. Even if the car rental company accepts other forms of payment, you may still want to use your credit card if it comes with the Auto Rental Coverage.
This benefit may save you some money at the car rental counter because you may decline the rental car company’s damage waiver. The following documents may be informative as you decide whether to use the damage waiver from your credit card or the rental car company:
- Your auto insurance policy
- Your credit card’s Guide to Benefits
- Damage waiver from the rental car company
Electronics and appliances
Electronics and appliances are major purchases for many households, and they can be expensive to fix and maintain. Using your credit card to buy these items could potentially help you offset some of these costs.
If your credit card comes with extended warranty coverage, you may be able to get an additional year of coverage once the manufacturer’s warranty expires. Another similar credit card benefit is purchase protection. A purchase protection benefit may reimburse you the cost to repair or replace an eligible item you purchase against theft, damage or involuntary and accidental parting within a set period of time after purchase.
Event tickets
Does your credit card have any partnerships with event venues? Sometimes you can use your credit card to get access to advance ticket sales, special blocks of seating and lounges and discounts within the venue. You may even get to attend exclusive experiences for cardmembers.
Online transactions
Credit cards come with protections that could mean you’re not responsible for unauthorized purchases. You may feel more secure about making online purchases with a credit card.
In summary
It can be challenging to know when to use a credit card. When deciding which payment option to use, it could be helpful to consider your credit card’s rewards, benefits and security protections. Knowing the ins and outs of your credit card’s features may help you maximize rewards and get certain travel and purchase protections.
