IT'S SIMPLE: in order to establish credit you have to use credit.
For that reason alone it's a good idea to use a credit card from time to time. Beyond that, there are also certain types of purchases that you should always use credit cards for because of the increased security that cards offer.
Many credit cards also offer additional perks like points earned on purchases, which can really add up over time, essentially equating to "free money" for those who are consistently able to pay off their card balances, never having to pay costly interest fees.
Electronics and appliances
Not only is it a great idea to purchase big-ticket electronic items on your credit card because you can rake in the points, many credit cards provide some kind of insurance on these items when purchased using a card.
The most common of these insurances comes in the form of an extended warranty, often doubling the length of time the manufacturer provides.
Some cards may also offer price protection that will cover the difference if the price of an item decreases within a specific period of time after the purchase is made.
Similar to electronics purchases, you'll want to use your credit cards to purchase home appliances.
Card holders can enjoy some additional security and insurance on their purchases, such as the ability to double up on the warranty period.
Event tickets
Though it may not relate to insurance or security, many credit card companies have partnerships with event promoters or venues.
These partnerships provide customers with access to tickets to big events in advance of the general public, discounts or perhaps even the opportunity to go to exclusive events only offered to card holders.
Travel Arrangements
Many credit card issuers will offer their customers assistance with travel. This often comes in the form of cancellation or trip interruption coverage - which many people end up booking separately through an insurance company because they don't even know they've got coverage through their credit card if a booking is made with that card.
Some cards might even offer coverage for lost luggage or some emergency medical coverage.
Booking with a travel-themed credit card allows card holders to double up on the benefits. These benefits are certainly pretty good considering that you'll generally require a credit card to secure any bookings you make for travel.
Car rentals
Many credit cards offer some level of insurance to card holders who book using cards.
This coverage is typically not as thorough as when you purchase insurance through the rental company, but it usually does cover some collisions, though not typically insurance for liability or injury.
Overseas purchases
Many people face difficulties when trying to use debit cards overseas. Since credit cards are typically more widely accepted than debit cards, you may find that it's easier to use a credit card overseas than to use a debit card, or perhaps even cash. It is also generally safer to carry a credit card as opposed to lugging around large sums of cash since it's easier to cancel a credit card if it gets lost or stolen than to recover lost cash.
Some credit card companies will also offer a more favourable exchange rate than a currency exchange office, so this can also provide clients with some cost savings.
Online Purchases
Credit card transactions are more easily traced on-line than if you use debit, money orders or checks.
These cards often provide a certain amount of coverage for fraudulent purchases, which can really help card holders if their credit card information happens to fall into the wrong hands.
Always keep in mind when buying on-line never send card information over e-mail or text message. You should also avoid any websites that don't use a secure payment site.
Cellphone bills
Do you live in fear of losing your cellphone? If you consistently pay your phone bills using your credit card your card provider might actually offer you some coverage.
The bottom line
Though there are many times when your card might offer perks, there are times you should not use a credit card. First and foremost, don't use credit cards when you don't have the cash to cover your purchase.
You should also avoid making purchases anywhere that you're concerned about the safety or security of your card.
Simply be card sharp!
IT'S SIMPLE: in order to establish credit you have to use credit.
For that reason alone it's a good idea to use a credit card from time to time. Beyond that, there are also certain types of purchases that you should always use credit cards for because of the increased security that cards offer.
Many credit cards also offer additional perks like points earned on purchases, which can really add up over time, essentially equating to "free money" for those who are consistently able to pay off their card balances, never having to pay costly interest fees.
Electronics and appliances
Not only is it a great idea to purchase big-ticket electronic items on your credit card because you can rake in the points, many credit cards provide some kind of insurance on these items when purchased using a card.
The most common of these insurances comes in the form of an extended warranty, often doubling the length of time the manufacturer provides.
Some cards may also offer price protection that will cover the difference if the price of an item decreases within a specific period of time after the purchase is made.
Similar to electronics purchases, you'll want to use your credit cards to purchase home appliances.
Card holders can enjoy some additional security and insurance on their purchases, such as the ability to double up on the warranty period.
Event tickets
Though it may not relate to insurance or security, many credit card companies have partnerships with event promoters or venues.
These partnerships provide customers with access to tickets to big events in advance of the general public, discounts or perhaps even the opportunity to go to exclusive events only offered to card holders.
Travel Arrangements
Many credit card issuers will offer their customers assistance with travel. This often comes in the form of cancellation or trip interruption coverage - which many people end up booking separately through an insurance company because they don't even know they've got coverage through their credit card if a booking is made with that card.
Some cards might even offer coverage for lost luggage or some emergency medical coverage.
Booking with a travel-themed credit card allows card holders to double up on the benefits. These benefits are certainly pretty good considering that you'll generally require a credit card to secure any bookings you make for travel.
Car rentals
Many credit cards offer some level of insurance to card holders who book using cards.
This coverage is typically not as thorough as when you purchase insurance through the rental company, but it usually does cover some collisions, though not typically insurance for liability or injury.
Overseas purchases
Many people face difficulties when trying to use debit cards overseas. Since credit cards are typically more widely accepted than debit cards, you may find that it's easier to use a credit card overseas than to use a debit card, or perhaps even cash. It is also generally safer to carry a credit card as opposed to lugging around large sums of cash since it's easier to cancel a credit card if it gets lost or stolen than to recover lost cash.
Some credit card companies will also offer a more favourable exchange rate than a currency exchange office, so this can also provide clients with some cost savings.
Online Purchases
Credit card transactions are more easily traced on-line than if you use debit, money orders or checks.
These cards often provide a certain amount of coverage for fraudulent purchases, which can really help card holders if their credit card information happens to fall into the wrong hands.
Always keep in mind when buying on-line never send card information over e-mail or text message. You should also avoid any websites that don't use a secure payment site.
Cellphone bills
Do you live in fear of losing your cellphone? If you consistently pay your phone bills using your credit card your card provider might actually offer you some coverage.
The bottom line
Though there are many times when your card might offer perks, there are times you should not use a credit card. First and foremost, don't use credit cards when you don't have the cash to cover your purchase.
You should also avoid making purchases anywhere that you're concerned about the safety or security of your card.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos