12 Purchases You Should Always Make With a Credit Card

Using a credit card isn’t just convenient; it can also offer significant financial benefits and protections. By strategically using your credit card for certain purchases, you can maximize rewards, take advantage of added perks, and safeguard your money.

Why Use a Credit Card for These Purchases?

Credit cards often include features like fraud protection, extended warranties, purchase insurance, and rewards programs. These benefits make them the preferred payment method for certain types of transactions.

Purchases to Always Make With a Credit Card

1. Travel Expenses
   • Credit cards often provide travel insurance, such as trip cancellation coverage or lost luggage reimbursement.
   • Many also waive foreign transaction fees and offer perks like airport lounge access.
2. Online Shopping
   • Credit cards include purchase protection, which can help if an item is damaged or doesn’t arrive.
   • They also provide an extra layer of security against fraud compared to debit cards.
3. Electronics and Appliances
   • Many credit cards offer extended warranties, covering your purchase beyond the manufacturer’s warranty.
   • Some cards also provide purchase protection for accidental damage or theft.
4. Recurring Subscriptions
   • Automating payments for streaming services, gym memberships, or other recurring charges ensures you never miss a due date.
   • You can also earn rewards on these consistent expenses.
5. Hotel and Rental Car Bookings
   • Credit cards often include collision damage waivers for rental cars.
   • Hotels may place a hold on your account, and using a credit card avoids tying up funds in your checking account.
6. Event Tickets
   • Some credit cards provide access to exclusive presales or offer event ticket insurance in case of cancellations.
7. Gas and Groceries
   • Many credit cards offer high cashback percentages or bonus points for these everyday expenses.
8. Big-Ticket Items
   • Extended warranties, purchase protection, and the ability to earn significant rewards make credit cards ideal for large purchases.
9. Ride-Share and Transportation
   • Some cards partner with companies like Uber or Lyft, offering cashback or credits for frequent riders.
10. Dining Out

• Many cards reward dining with bonus points or cashback, making it an excellent category for earning rewards.

11. Cell Phones

• Credit cards may include cell phone protection, covering damage or theft when you pay your bill with the card.

12. Charitable Donations

• Use your credit card to track donations, potentially earn rewards, and simplify your record-keeping for tax purposes.

Pro Tips for Maximizing Rewards

• Check Card Benefits: Review your credit card’s terms to ensure you’re leveraging all available perks.
• Stay Within Budget: Avoid overspending just to earn rewards—stick to purchases you’d make anyway.
• Pay in Full Monthly: Always pay off your balance to avoid interest charges and negate the rewards benefits.

Example Rewards Breakdown

Imagine you use a credit card with the following rewards program:

• 3% cashback on dining: $300/month = $9/month cashback
• 2% cashback on groceries: $500/month = $10/month cashback
• 1% cashback on other purchases: $200/month = $2/month cashback

Total Monthly Cashback: $21
Annual Cashback: $252

By focusing on these categories, you can earn hundreds in rewards each year.

Make the Most of Every Purchase

Choosing the right credit card for your spending habits can amplify your financial advantages. Always evaluate your card’s terms and features to ensure you’re maximizing its potential.