Credit cards have become a necessity for people nowadays and there are many reasons behind this. Along with the purchasing power that credit cards provide, one can also avail of various exciting benefits using a credit card. Card issuers nowadays not only focus on offering a good credit limit to their customers, but they also try to offer additional privileges to their cardholders. These privileges may include rewards/cashback on all purchases, discounts on travel-related bookings, exciting deals and offers across lifestyle categories, and many more. However, one can get the maximum benefit out of their credit card only if they are responsible enough to use their card and they know where is it right to use a credit card and where not. If you are a credit card user, you might be aware of certain types of transactions that you should never make using a credit card, such as cash withdrawals, purchases worth more than your credit limit, etc. But, today we are going to discuss a few transactions that you should always make using a credit card.
1. Large Electronic Purchases
If you are thinking of making a large electric purchase, you must do it using a credit card. Not just to earn a lot of reward points, but also because credit cards come with purchase protection/extended warranty plans. So, you might get an additional warranty on the item you are purchasing using a credit card. Moreover, the purchases made on credit cards can easily be converted into EMIs, so you can also do it if you find yourself unable to make the full payment at once.
2. Online Purchases
Credit cards are probably the most convenient method of payment for online shopping. It is because there are so many credit card offers and deals that are always running on these online shopping platforms. So, you can save a lot using these offers on your online purchases. And online spends using a credit card becomes the most convenient when your card offers accelerated rewards on online shopping. Apart from this, the zero liability protection provided by credit cards is a great factor here as you can save yourself from any fraudulent or unauthorized transactions by reporting the loss to the bank in a timely manner.
3. Rent Payments
Many people believe that making rent payments using a credit card is not a good idea, but that is not the right perception. Many credit cards don’t offer reward points on rental transactions, but there are some credit card offers running on online rent payment platforms most of the time, such as MagicBricks, RedGirraffe, etc. Moreover, you can easily pay your rent without worrying about the balance available in your bank account as you will always have the credit available in your credit card and you can pay it later as per your convenience.
4. Daily Purchases
Most of the credit cardholders believe that it is not at all a good idea to make everyday purchases using a credit card. But, there is no harm in doing it if you are responsible enough to make timely bill payments on your credit card. The more you spend on a credit card, the more you can save using it, but you should always keep in mind that overspending is also not a good idea. So, you can definitely make daily purchases, such as groceries, utility bill payments, etc, using your credit card. It will not only help you earn more rewards, but you will also be able to achieve the milestone spend and the minimum spend required for fee waiver of your card.
Read More: How do you pay rent with a credit card?
Using a credit card seems to be a really simple task, but using is in a wise manner might be challenging sometimes. You should know where it is good to use a credit card and where you should never use it. We hope that the above information has been helpful for you to understand what are some transactions that you should always try to make using your credit card. Other than this, is you have got a category-specific credit card, such as a travel card or a shopping card, you should make sure that you make all the spends on that particular category using your credit card. This is how you can use you credit card to get the most out of it.