Maximize Rewards and Protection
Using a credit card can offer many benefits beyond just convenience. From earning rewards and cashback to getting added protection on your purchases, knowing what to buy with your credit card can help you make the most of it. In this blog, we’ll dive into the best things to buy with a credit card, so you can optimize rewards, enjoy additional perks, and protect your purchases.
1. Travel and Vacation Expenses
One of the top things to use a credit card for is booking travel. Many credit cards offer travel rewards, points, or miles for purchases like flights, hotels, car rentals, and vacation packages. Additionally, credit cards often include travel-related perks such as:
- Travel insurance: Many cards automatically provide travel insurance, including trip cancellation, lost luggage, or travel delay coverage.
- Rental car insurance: Instead of paying for extra coverage at the rental counter, some credit cards offer primary or secondary rental car insurance as a benefit.
- No foreign transaction fees: If you’re traveling abroad, certain cards waive foreign transaction fees, saving you money on international purchases.
With these perks in mind, using a credit card for travel can both protect you and help you earn rewards to use on future trips.
2. Everyday Purchases for Cashback Rewards
Everyday purchases like groceries, gas, and dining out are great candidates for credit card use. Many credit cards offer cashback rewards for these essential expenses, which can quickly add up. Some cards have rotating cashback categories or bonus rewards on specific purchases, such as:
- 3%-5% cashback on groceries or gas
- Bonus points for dining at restaurants or food delivery
- Cashback on subscription services like streaming platforms
By using a rewards or cashback card for these purchases, you’re essentially earning money back on things you already buy regularly.
3. Online Shopping
Online purchases are another smart way to use your credit card. Many credit cards provide purchase protection or extended warranties on items bought online, which means you’re covered in case the product is defective or gets damaged. Credit cards also typically offer fraud protection, meaning you’re not liable for unauthorized charges.
Additionally, some credit card issuers partner with online retailers, offering bonus points or discounts when you shop through their portals or use their cards.
4. Big-Ticket Items
Purchasing big-ticket items like electronics, furniture, or appliances with a credit card can give you extra peace of mind. Most credit cards offer perks like:
- Extended warranties: Some cards extend the manufacturer’s warranty on eligible items, which is helpful for high-cost electronics or appliances.
- Purchase protection: Credit cards may cover the cost of repairs or replacements if an item is damaged, lost, or stolen within a specific time frame.
- Price protection: Certain cards offer price protection, where you can be reimbursed if the price of a recently purchased item drops within a set time period.
Using your credit card for expensive purchases not only helps with rewards but can also save you in case something goes wrong.
5. Subscription Services
Many people use credit cards for their recurring subscriptions, such as streaming services, gym memberships, or software tools. By using a rewards credit card for these automatic payments, you can accumulate points or cashback while simplifying the process of managing your monthly expenses.
Some cards even offer specific rewards for popular streaming services like Netflix, Spotify, and Hulu, adding even more value to your subscriptions.
6. Utility Bills and Cell Phone Payments
Paying utility bills and cell phone bills with a credit card is a smart way to rack up rewards while covering everyday essentials. Some credit cards even offer cell phone insurance when you use them to pay your monthly phone bill, covering you in case of damage or theft. Be sure to check if your card offers any perks like these.
7. Charitable Donations
Many people don’t realize that credit cards can also be a great tool for charitable donations. Not only do you support a cause you care about, but if your card offers rewards on charitable spending, you can earn points or cashback while making a positive impact. Some credit cards also partner with specific charities and offer special bonuses or match your donations, allowing your contribution to go even further.
8. Emergency Expenses
While it’s ideal to have an emergency fund, there are times when unexpected costs arise, and a credit card can be a useful tool for handling them. Whether it’s car repairs, medical bills, or urgent home repairs, using a credit card can give you the flexibility to pay upfront while giving you time to repay it.
Additionally, credit cards with 0% introductory APR offers can help you cover large expenses and pay them off interest-free over time, giving you breathing room during emergencies.
9. Travel and Entertainment Experiences
Experiences such as concerts, sporting events, amusement parks, or exclusive dining experiences can be expensive, but many credit cards offer special rewards, points, or even discounts for these types of purchases. Some credit cards partner with travel or entertainment companies to provide cardholders with unique access to VIP events, early ticket access, or exclusive deals.
10. Business Expenses
If you run a small business or freelance, using a dedicated business credit card for expenses is an excellent way to keep track of your spending and maximize rewards. Business credit cards often come with bonus rewards for common expenses like office supplies, advertising, and travel. They may also offer perks like free employee cards or expense tracking tools to simplify financial management.
Key Takeaways:
Using a credit card strategically can offer more than just convenience. By charging the right types of purchases to your card, you can maximize your rewards, enjoy additional purchase protections, and gain access to perks that help save money. Whether it’s travel expenses, everyday purchases, or big-ticket items, knowing when to swipe your card can make a big difference in how you manage your finances.
Always remember to pay off your balance in full each month to avoid interest charges and to keep your credit score in good standing. Happy spending!