Most moneysaving advice will dissuade you from swiping your credit card, saying it is the easiest way to incur a pile of debt. But when you think about it, there is little truth to this, as credit card debt is never the fault of the card itself but always by the user.
Your credit card can come in handy when you need to make cashless transactions, which is more convenient. Aside from these perks, there also are other instances credit cards are, in fact, better used than cash. Here are items you should always buy with a credit card—and why.
1. Online purchases
Online shopping has rapidly become a popular choice among tech-savvy consumers in the Philippines, and for good reason. Last year, the Visa eCommerce Consumer Monitor released a report saying 9 out of 10 people prefer to do their shopping online for convenience, better prices, and numerous deals. While payment options for online merchants have been expanding, purchasing with the use of credit card will protect you from fraud and damaged goods since they can be held liable for fraudulent or illegitimate activity.
While electronic items come with a warranty, their scope is only limited to instances such as factory defect. Credit cards, on the other hand, have additional measures in place, which protects users from accidental damage and theft of their gadgets for a certain period of time. And the best thing about this? It’s free of charge.
3. Big-ticket items
If you badly need to get a new appliance or furniture, using your credit card is the wisest option since these one-off big purchases can be paid in installment without added interest. It will allow you to get an expensive item instantly and pay it in a more flexible manner.
4. Utility bills
Collecting credit card points can be fun; after all, you can use them to purchase items or get freebies and discounts. While accumulating points can be addicting, especially if the rewards are exciting, it may just set your budget off the rails. But why splurge on merchandise when you can get points by simply paying your monthly utility bills with your card? Even better, you can enroll your accounts to your card’s auto debit function and your electrical, water, and internet bills will be paid on time.
5. Hotel room
Some hotels require guests to make a deposit upon check-in to cover for possible room damages, in-room services, and purchases. Having no credit card can offset things on your vacation, if not ruin the trip altogether. Having a credit card also gives you the advantage of booking your desired room with a view in advance, and at a much cheaper rate.