Credit Cards can certainly get you into trouble. Using them irresponsibly to buy items or services that you can’t afford is not how they are meant to be used. However, there are certain purchases that perfectly warrant the use of a credit card.
When purchasing items and services that are either scheduled for a later date or are being delivered in the future, it’s best to use your credit card. This is because your purchases are protected by The Fair Credit Bill Act.
This Act prevents you from having to pay for goods that weren’t delivered or services that weren’t provided. If the merchant that you paid does not refund your purchase, your credit card issuer will. The same concessions are not made when using a debit card.
If you travel often but don’t own a travel rewards credit card, you should seriously look into it. The high perks rewarded when using these types of credit cards for travel expenses can save you a bundle. Many travel credit cards will also protect you from potential loses. Things such as baggage and trip delay coverage will be more easily reimbursed in case something unexpected happens.
Maybe you’re traveling because you need to relocate for work or family. Rental companies and hotels will often place a hold on your card before the transaction actually occurs. Using a debit card may increase the chances of your payments bouncing back. Using a credit card gives you a lot more leeway and peace of mind as you wait for the holds to release.
When you are making large purchases such as appliances or expensive electronic equipment, using your credit card may make you eligible for free financing. You can pay off these items over time with lower monthly payments without paying interest.
Some credit cards even offer extended warranties or a certain level of price protection. Price protection allows you to receive a refund for the difference of your purchase if the item goes on sale within a certain time period.
Most Credit Cards today offer reward points of various kinds. If you know you are fiscally responsible, you may want to use your credit card for most of your purchases. The best way to avoid pitfalls is to treat your credit card as you would a debit card. This will help you keep track of what you’ll need in your checking account at the end of each month.