Here’s Why Nearly Every Purchase Should Be On a Credit Card
Experts: Here’s Why Nearly Every Purchase Should Be On a Credit Card
October 4, 2023 By Heather Taylor
How do you know which purchases, whether they’re big or small, should be put on a credit card? This decision often depends on the type of purchase and how responsible the cardholder is with their credit card use. GOBankingRates asked experts to list the purchases you should put on a credit card versus those where you may need to exercise caution.
Put These Purchases on a Credit Card
Experts agreed that when used responsibly, credit cards should be the go-to form of payment for most everyday purchases as well as some larger ones.
Responsible credit card use helps you build your credit. Plus, credit cards typically come with benefits that you’d miss out on if you pay with your debit card, cash, checks or payment apps. Those benefits may include reward points, miles or cash.
Cash-back credit cards, in particular, are great everyday cards because they often have simple reward structures that allow you to rack up cash back on a wide range of purchases. For example, the cashRewards Credit Card from Navy Federal Credit Union pays 1.75% cash back on all purchases for cardholders with direct deposit. (Those who don’t sign up for direct deposit still pocket 1.50% cash back.) Plus, the card charges no annual fee, so you keep all that cash back you’re earning.
If you’re considering a cash-back card, don’t forget to check for sign-up bonuses, which give you another way to cash in. Navy Federal’s cashRewards Credit Card is currently offering $250 bonus cash back when you spend $2,500 within your first 90 days of opening an account. (Offer ends Jan. 1, 2024) For a limited time, you can also get a one-time $98 statement credit when you pay $49 or more for an annual Walmart+ membership using your cashRewards Credit Card.
Now, let’s take a closer look at the purchases you should be putting on your credit card as long as you can afford the costs.
Travel Purchases
Use a credit card for travel purchases largely out of necessity, said Freddie Huynh, who is the vice president of data optimization with Freedom Debt Relief. Most domestic airlines, hotels and rental car companies request a credit card to hold reservations or for payment. This is also true for those planning international travel.
In the event a debit card is accepted, Huynh said they may place a hold on the bank account associated with this card. This means the cardholder will be unable to access this amount of money until the company releases the hold.
Online Purchases