I use my credit card sparingly these days, but some purchases are better put on the card than paid in cash. Whether it’s to receive cash back rewards, earn travel points, or simply get the best seats available for a concert, credit cards can be a better option for big purchases.
Of course, using a credit card is only a good option if you can pay your credit card bills on time without accruing interest. If your finances are in good shape, here’s when it may make sense to put your next expense on a credit card.
1. Business expenses
Experiencing cash flow fluctuations is a normal part of running any business, which makes easy access to credit essential for many small business owners. However, it’s not just convenience that credit cards give small business owners; you’ll also get:
- Cash back rewards that can add up quickly for large purchases (like equipment)
- The ability to build credit as a small business, making it easier to get future loans
- Easy expense tracking for taxes
What’s more, a credit card protects your business against losses from unauthorized purchases. This can be critical for small business owners who are using their cards for purchases and want the peace of mind of not being on the hook for fraudulent charges.
Related: Looking for the best cash back cards? Click here to see top-rated cash back credit cards.
2. Electronics and appliances
Using your credit card to buy an expensive computer or a large appliance not only gives you lots of cash back rewards — if you’ve got the right card — but it can also help protect your purchase.
Some credit cards will even extend the standard warranty length for appliances and electronics, which could keep more money in your pocket if your new computer decides to give up after the manufacturer’s warranty.
Some cards even offer price protection that can pay you the difference if there’s a price drop. That could come in handy if, let’s say, your new refrigerator goes on sale a few days after you bought it.
3. Booking travel
If you travel even occasionally, using a credit card to book your trip is probably the best option. One of the biggest benefits of using a card is that many of them provide travel insurance, which can help you recoup the cost of a trip if it’s canceled due to illness or weather.
Not having to buy separate travel insurance may be enough of a perk on its own, but if you use a travel credit card, typically offered by airlines or hotels, you can get plenty of other perks, including:
- Cash back or general reward points
- Airline and hotel points
- Complimentary airport lounge access
- Free checked baggage and priority boarding
- Hotel upgrades like late checkouts, discount rates, or free breakfast
Choosing the best travel credit card doesn’t have to be difficult. Click here to see the best travel credit cards.
4. Event tickets
Some credit cards offer specific entertainment rewards when you buy event tickets, like for concerts or sporting events. In addition to the typical purchase protections, your credit card may give you:
- Exclusive access tickets
- Presale tickets
- Preferred seating
- Invitation-only events
- Meet-and-greet events
An added benefit of using your card to buy tickets the next time Hamilton is in town, is that some credit cards will reimburse you if you’re unable to make it to the event because of sickness, accidental injury, or public transportation problems (like the bus breaking down on the way to the show).
While you need to be careful about not overusing your credit card, or using it when you can’t cover the payments, many credit cards give you protections and perks that make using them well worth it for some consumers. Now, if you’ll excuse me, it’s time to see what football ticket perks I might be eligible for.
