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4 things you should always purchase with a credit card

You’ve got cash, you’ve got debit cards, and you’ve got credit cards.

How are you supposed to know when to use each one? Here are a few instances when you should definitely pull out the credit card for a payment [1]!

1. Flights and accommodation

Did you know that many leading credit cards also offer free travel insurance when you purchase flights and accommodation?

Take a look at the small print on your credit card agreement, and see if you qualify for free travel insurance for your holiday through your issuer. There are certainly plenty of Aussies taking overseas trips, with a record 9.7 million of us taking short-term trips away in the year to June 2016 (ABS), so we may as well be making the most of those flights!

2. Goods that come with warranties

One of the best credit card deals out there are those that extend the warranty of the item you purchase.

These days, many products only come with one or two years worth of warranties – meaning that if they fall apart after that time, you’re simply going to have to front up to fix it or buy a new one. This can obviously be a huge let down if the item is something you’d expect to last a lot longer, such as a dining room table.

In some cases, purchasing on your credit card extends the life of that warranty, so even if your item breaks down within its own warranty period, you may still be able to have a replacement free-of-charge through your credit card issuer.

3. Online goods

Imagine purchasing a pair of brand new jacket online, only to discover that it’s coming apart at the seams when it arrives.

If you’d paid by credit card, you can immediately call your issuer and dispute the payment. Legal advice website Lawstuff Australia recommends this strategy, as it may help you hold onto your funds while you sort out the situation with the company. Getting work done around the house? Be sure to pay by credit card.

4. Big ticket items

Big ticket items such as furniture, vehicles, and electronics are perfect examples of what to buy with a credit card.

Their higher price points will help you ramp up your credit card rewards faster, and when you have a Beyond Bank low rate Visa credit card [2] that offers an interest-free two months, you have a little more time to pay it off before interest begins to accrue.

Remember whenever you use your credit card always make sure you check for any surcharges or additional fees that may apply and take these into account when considering the price of the goods or services you are looking to purchase.