Always use your credit card for these 5 purchases, according to financial experts
Slipping this plastic for some items could seriously bear fruit.
Your credit card can be useful for a variety of situations, such as creating credits and purchasing large ticket items that you need to pay over time. What you may not know, however, is that using your credit card can have many other major advantages, protection against fraud to Silver awards . Know when using your credit card - for example, in cash or in debit - can help you make better financial decisions that are paid in the long term.
"The use of a credit card can help to establish or improve your credit scoring over time, as long as you make appropriate payments," said John Cabell , Director General of Intelligence of Payments to J.D. .
According to Nerdwallet Credit cards expert Sara Rathner, Credit cards are also often delivered with certain consumer protections that debit cards do not have, such as the guarantee and the protection of prices of prices.
"If you notice fraudulent costs on your credit card, you are not out of money," explains Rathner. "You can solve the problem with a quick telephone call to your credit card business. With debit cards, the longer you need to notice and report fraud, the more you are responsible for covering part of the stolen funds."
With all this in mind, here are five types of purchases for which you will certainly want to take out your credit card.
Read this then: Never use your credit card for these 6 purchases, according to financial experts .
1 Recurring subscriptions
Courtney Alev , financial defender of consumers to Credit karma , strongly recommends using your credit card for recurring costs, such as a streaming service, grocery delivery Gymnasium subscription or subscription. AE0FCC31AE342FD3A1346EBB1F342FCB
"An affordable recurring load that you are able to pay in full time each month helps you to establish a good credit history and increase your credit over time, even if it is a small purchase "Explains Alev. "Make sure you automatically configure You can therefore "define and forget it" while knowing that your invoice will always be paid in time ".
Jennifer Doss , credit card analyst and senior editor -in -chief of CARDRATINGS.COM , suggests paying your monthly mobile phone bill with your credit card. Many credit card companies offer mobile phone insurance - which means that if your phone is damaged or stolen, part or all of the repair or replacement costs may be covered.
2 Online shopping
When you choose between your debit card or your credit card to Buy something online , ALEV advises to opt for the latter. If something is wrong with your purchase and the merchant will not solve it, Rathner says it is much easier to challenge the costs when using a credit card.
"Many credit card companies will work with you to get a refund if you never receive an item you have paid," adds Alev.
This is particularly important when purchasing more expensive items - as Rathner points out, you will have an appeal and peace of mind if the product is lost or stolen on your way to you.
Read this then: Always use money for these 5 purchases, say financial experts .
3 Travel expenses
Whether you plan a romantic getaway on weekends, a quick business trip or a long family holidays , you will certainly want to take out this plastic for flights and Hotel reservations .
"Many credit cards offer bonus awards on travel purchases," explains Doss. "And by paying eligible travel purchases with your credit card, you can be protected if something is wrong during or leading to your trip."
Dean Kaplan , expert in debt collection and president of The Kaplan group , still uses a credit card for travel expenses.
"In this way, I get auxiliary advantages such as emergency medical coverage, lost baggage refund, and even Cancellation / travel delay insurance "He explains." Some cards even give up the charge for converting currency abroad when you are outside the country, which can save you 5 to 10% compared to the conversion of money or to use an automatic counter to obtain the 'money. ""
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4 Electronic
On the market for a new television, a tablet or a flat -flat -screen house center? LEVON L. GALSTYAN , a consumer finance expert and a CPA with Oak View law group , strongly suggests using your credit card for purchases like these.
"Credit cards allow you to accumulate points thanks to high -value electronics purchases and also offer additional advantages such as purchasing protection and warranty coverage ," he says Better life . "So, if you buy the latest smartphone with a two-year warranty, you may be able to obtain an additional year of coverage with the correct credit card. Some credit cards can also provide flight protection and damage to A limited time after purchase. "
5 All products from unknown sellers
When you buy anything from a merchant with whom you have never bought before, Kaplan says that it is best to use your credit card rather than a debit card.
"Always use your credit card if you are skeptical about the seller or on the quality of the product or service that you buy," he adds. "If this does not work, it is much easier to challenge costs on your credit card than to recover your money from a debit transaction, a check or a cash payment."
In addition, credit card companies offer additional insurance even if the purchase initially seems to work, but there is a problem. In fact, you have six months to recharge, according to Kaplan.
