7 Smart Things to Buy with a Credit Card
Americans owe a record-breaking $1.04 trillion in credit card debt, and 60% of people don’t have enough income to pay off their credit card bills every month.
With these shocking numbers in mind, you may be wary of getting a credit card. However, as long as you have the money to pay your balance off every month, owning a credit card has a lot of benefits. It can make purchasing things more convenient, improve your credit score, and even help you save money.
Of course, you’ll want to know the best things to buy to take full advantage of your new card.
Are you ready to start swiping? Keep reading to discover 7 purchases that are smart to make with a credit card.
1. Online Purchases
There’s no denying the convenience of shopping online. After all, who wouldn’t want to shop while lounging on the couch in their pajamas?
But buying stuff online can become a hassle if you don’t have a credit card. You’d have to transfer money into a third-party account like PayPal before making a purchase.
However, credit cards make online purchases easier and safer. You can even save your information on sites that you frequent a lot, so you don’t have to keep inputting it every time.
With all the new identity theft protection available today, you can rest assured knowing that buying things online with a credit card is safer than ever.
2. Anything Expensive
When was the last time you bought a new TV, video game console, or another large purchase? Think about how inconvenient it was to pull out a large amount of cash from the ATM. Plus, if anyone were to grab your wallet before you made it to the store, you’d be out of luck.
The good thing about a credit card is that it can be immediately frozen if it gets stolen. You don’t even have to call anymore—just push a button on your app! It’s also more convenient to pull out your card instead of having to stop at the bank or ATM first.
Additionally, you won’t have to incur ATM fees to get cash out. In fact, many credit cards have point systems in place that will allow you to get money back on large purchases, effectively saving you money. Make sure you check out this helpful article to find the best credit cards available.
3. Travel Expenses
Luxury hotels, flights, rental cars, and tours can all be costly purchases, which makes them a great thing to charge to your card. Additionally, they’re often booked online. So, you can enjoy hassle-free and safe payment by using your new card.
But the real benefit of charging travel expenses is the points you may get. Some points cards allow you to earn extra rewards on any travel-related purchase. This can add up, so you can save on your upcoming trip.
Some credit card issuers even offer perks like travel insurance and rental car insurance for free. You may even get access to special discounts, so make sure you choose your card wisely if you’re a frequent traveler.
It seems that gas prices are constantly on the rise, making you cringe every time you pull up to the pump.
While you can’t always avoid high gas prices, you can at least get some of your money back by paying with a credit card. Those nifty points systems can help you get cash back rewards. Depending on your card, you may get extra points for buying gas.
5. Restaurant Bills
Have you ever sat down at a restaurant and saw that the prices were a little higher than expected? Or maybe you spontaneously decided to get a drink or dessert.
If you planned to pay with cash, these can be sticky situations. By paying with your credit card, you can feel free to splurge on that dessert without worrying if you’ll be a few bucks short on the bill.
Additionally, certain cards will give you extra rewards for restaurant purchases, helping you save.
6. Monthly Bills
If you’re like most, the last thing you want to do on your day off or after a long day of work is to pay your bills. Luckily, this is easier than ever when you use a credit card.
You can set up automatic payments, so all your monthly bills get paid without any effort from you. Of course, this is another great chance to rack up those points and earn some of your money back!
7. Anything That’s Tax-Deductible
If you hate paying your bills, you’re sure to hate tax season too. If you make a lot of tax-deductible purchases throughout the year, it can be a pain to save all those receipts.
However, buying things through your credit card means that there’s already a record of all your purchases. To make things easier, you may want to have one credit card only for tax-deductible purchases. This way, you can pull up your history and see exactly how much you’ve spent on products that are eligible for deductions.
Best Things to Buy with a Credit Card
Don’t keep paying for everything with cash! Instead, follow the list above to discover the best things to buy with a credit card. From travel expenses to monthly bills, paying with a credit card can save you tons of time and money in the long run.
With all that money you get back, you may decide it’s finally time to take a vacation. Check out these UK bucket list destinations today for inspiration.