Many a times, you may hear that you should avoid making credit card purchases, as much as possible, and pay by cash or debit card. It helps you change your overspending habit. It is true but in some cases, making credit card purchases can actually help you same money. Read on to know what types of purchases you should make with a credit card.
Tour related expenses - You can use your credit card to make tour related expenses if there are rewards for doing so. There are some credit cards available which cover travel services such as, car rental insurance, automatic travel accident insurance, lost baggage, etc. If you have such a card, then you may not require purchasing a travel insurance policy.
Making purchases through PayPal - Usually the website encourage you to pay for your purchase directly from your bank account, when you sign up for PayPal. However, this may not be the wisest decision. It is advisable that you pay through your credit card company which will help you in case you need to dispute a purchase.
Paying for services offered - When you make home improvements like changing tiles in your bathroom, you're not sure about the craftsmanship. A grout may crack after some days of installation. In such a situation, you'll lose your money if you've paid for the service with cash or a debit card. Instead, if you've made the payments with your credit card, then the merchant has to prove that you're satisfied with the services offered. This is because, the merchants, who accept credit cards, have to agree to the terms and conditions set by the credit card companies, which can always charge back any dispute purchase if it is proved that the service was not rendered properly.
Buying expensive items - It is always a good idea to buy expensive items by using your credit card. By doing so, you can extend the warranties of your items along with getting price protection. For example, if you find that the item is offered at a lower price within say, a week, then you can obviously ask for reimbursement.
While making credit card purchases, especially while buying expensive items, you should plan a budget and pay off the outstanding balances, as fast as possible. This will help you save money in the long run as you will pay relatively less towards interest payments altogether.