5 Things You Should Always Buy With a Credit Card

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So many protections it’s like a helmet for your finances! 

The best credit cards have a lot of benefits over other payment types. For one thing, a good rewards card can be worth its weight in cash back or points.

But that’s not the only reason to use your credit cards. There are also security features, purchase protections, and various insurances that can make them a far more valuable payment method than many people realize.

That’s why, no matter how else you like to spend, you should use your trusty credit cards for these purchases.

1. Common carrier travel expenses

There are a few good reasons to always charge your travel expenses. For one thing, travel is expensive, so there are a lot of rewards to be earned here.

But more importantly, there’s the travel insurance. If you have a travel rewards card, there’s a good chance it comes with some form of travel insurance. This can be absolutely priceless for nonrefundable travel expenses should something go wrong.

For example, trip interruption/cancellation insurance can reimburse you for nonrefundable flights and hotel stays if your trip is cancelled due to things like illness or severe weather. And that bag the airline lost? Lost bag insurance can reimburse you for the contents (up to the coverage limit).

2. Electronics and appliances

Here’s another pricey expense that’s worth putting on your cards. When a new washing machine can cost you upwards of $500, the rewards alone are worth the swipe.

Then there’s the purchase protection. Depending on the card you use, you may have purchase protections that can reimburse you should your new electronics get stolen or break within the first few months of ownership. Two of the most popular issuers both have quality purchase protection policies on several of their cards:

American Express purchase protectionChase purchase protection

And let’s not forget the extended warranty protection. Many rewards cards also offer an extended warranty perk that can increase the duration of the manufacturer’s warranty for an extra year or more. Since appliances seem to always break a week after their warranties expire, this can give you a little extra peace of mind.

3. Online purchases

Have you ever made a purchase online only for it to be nothing like was promised — or, worse, to never show up at all? If you used your credit cards, you have an option your debit card may not provide: chargebacks.

Credit card companies offer the option to dispute charges on your card when the merchant doesn’t hold up their end of the transaction. So, if the merchant doesn’t deliver, you can potentially get your money back.

That’s not the only reason to use a credit card instead of a debit card, though. There’s also the security. If your credit card information is stolen and used fraudulently, your liability is capped by law at $50 (and most issuers have $0 fraud policies).

Debit card protections are based on when you notice and report the problem; if you wait too long, you could lose your entire checking account balance without recourse.

4. Cellphone bills

So far we’ve mentioned a number of credit card protections, like travel insurance and extended warranties. But there’s one we haven’t mentioned yet: cellphone insurance.

Several great rewards cards also come with cellphone protection, which kicks in when your phone is lost, stolen, or damaged. This coverage caps out around $800. But the deductibles are small — around $25 to $100, depending on the card — so it’s still an awesome deal.

What’s more, it’s easy to qualify. All you need to do is pay your cellphone bill with your eligible credit card every month.

5. Large purchases

While we touched on electronics and appliances, the same reasonings apply to any large purchases, including the purchase protections and warranty extensions. But I want to focus a bit more on the rewards here. With the right card, the rewards you can earn on, say, a $2,000 sofa purchase could be worth $100 or more.

And this goes double for new cards with nice sign-up bonuses. Most rewards cards come with a bonus for new cardholders who can reach a set spending requirement within the first few months. These bonuses can be worth hundreds (or even thousands) of dollars. Even better, they stack with the regular purchase rewards, giving you even more opportunity to earn.

There’s one more big reason cards can be awesome for large purchases: intro APR offers. If you can qualify for a card with a 0% introductory APR offer, you could have a year or more of interest-free financing to pay off your purchases. If you can pay off the full balance during the introductory period, you’ll avoid any interest fees.

Even if you have a little left over, only your remaining balance will accrue interest (unlike deferred-interest store offers, which charge you interest on the full amount if you have any balance left when the offer expires).

Pay in full for best results

Alright, so we’ve talked a lot about the benefits of paying with your credit card — and there are many. But it all comes with a giant asterisk: interest.

Credit cards tend to have very high interest rates (the average APR is around 20%). If you carry a balance on your card for a few months, that interest can add up quickly.

Unless you have an intro APR offer, it’s best to only charge things you can pay off in full during the grace period (the time between when the statement ends and the bill is due). This will allow you to avoid high interest fees.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.American Express is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has positions in American Express. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

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