Purchases You Should Always Make With a Credit Card



If you're in the market for a new flat screen TV or any other type of electronic that may cost you a pretty penny, consider whipping out your plastic for this purchase.

When buying a TV or a computer on your credit card, you'll likely be afforded complimentary purchase protection against loss and theft, an extended warranty and points that will go towards your rewards program (if your card has one).

Also, if you're trying to build credit, retailers such as Best Buy and Target usually have a payment plan so you can make monthly payments on your card while creating a steady credit history.

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Automatic Bill Payments

If you have recurring monthly bills, such as a gym membership and utility bills, it can be very beneficial to set up auto-pay with your credit cards.

By linking those monthly bills to your card, you'll be able to rack up points for your card's rewards program faster and you won't have to worry about late payments.

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Online Shopping

When you're shopping online and you go to checkout, your personal information is being transmitted over the web. Many sites are secure but if they aren't, you'll want to be sure you made your purchase using your credit card.

Again, by using your credit card you can rack up points for your rewards but additionally, cards offer fraud protection. If you're using your debit card for an online purchase and your information gets hacked, your bank account is now comprised. Using your credit card is an assurance that your purchases remain protected.

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When it comes to booking travel, using your credit card is a great way to go. Not only do you accrue travel points for your card, you have the benefit of not having to pay right away for your reservation. For example, if you're booking an expensive hotel, you will still have time to save up before you actually have to make the payment. However, the ideal situation would be to save up for your vacation before you book, so you don't end up in unnecessary debt.

Also, you will have the opportunity to cancel, if need be.

Another added benefit to using your card for travel is the coverage. Most credit cards offer complimentary insurance, trip cancellation and rental car insurance.

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Tax Deductible Purchases

If you're planning on writing off items on your tax return, charging each purchase can help you stay organized and save you from a mess of receipts. However, it's recommended that you hold on to necessary receipts, in the event you are audited.

Your credit card statement is a great record of your spending, since most cards now have detailed accounts of each purchase.

If you use your car for business-related driving, you can charge your gas purchases and later write it off as an expense. However, always consult your tax professional to make sure you are writing off appropriate expenses.

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