I’m Charging All My New Appliances on a Credit Card. Here’s Why.

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I’m purchasing a bunch of new appliances for the home I’m remodeling. Learn why it makes sense to use my credit card for these costs. 

I am currently renovating a home I recently purchased. While I got a mortgage to buy the house, I’m financing the renovations out of my savings — which means I am paying my contractor directly and buying the materials myself.

Since I’m spending several thousand dollars to buy an entire kitchen full of appliances, I made the decision to charge all of those appliances on my credit card. There are a few big reasons why that’s the case.

I earned a ton of rewards for my purchases

My card offers me 1.5 points per $1 spent on purchases, and I get a 75% bonus on this because I’m in a customer loyalty program with the card company. This means I end up getting 2.625% cash back on my appliance purchases.

If I spend around $8,000 on buying these appliances, I will end up getting $210 back. This is a pretty decent sum simply for opting to charge the items instead of paying for them using my debit card and having the money taken directly from my checking account.

Of course, if I had to pay interest on the purchases, this would negate the value of these credit card rewards. But I plan on paying off my credit card bill in full when the appliances have been purchased, so I won’t have to worry about interest charges. I’ll basically just get close to a 3.00% discount for choosing to type in my card number at checkout.

I can take advantage of an extended warranty

Another benefit is that my credit card will double the manufacturer’s warranty, providing up to an additional year of coverage for eligible items that I buy with my credit card.

This is a huge benefit because, at least in my experience, problems tend to develop just after the warranty period expires. If this becomes an issue and my oven needs servicing or the washer/dryer has a problem, I’ll be able to turn to my credit card company instead of being out the money.

I get return protection

My card will also help me return any appliances that I have a problem with. While purchase protection coverage is limited to $250 per eligible item and $1,000 annually, this will still help if I have issues with some of the smaller appliances like the microwave or the instant hot water system.

While I’m planning to buy from reliable merchants that should accept any returns I need to make, there’s no guarantee of this happening. I’ll be glad that my credit card company has my back in case any problems do develop.

For all of these reasons, using my credit card to purchase my appliances is an easy call. Why would I give up these advantages when there’s no downside to charging the items as long as I pay them off before interest is charged?

If you’re purchasing appliances or any other big items yourself, you may also want to use your card to do it. Just be sure to check what cardholder benefits are available to you, as not all cards offer extended warranties and purchase protection. If yours doesn’t and you’re making a big purchase, you may want to sign up for a card that will take better care of you should something go wrong.

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