Top Purchases You Should Always Make With a Credit Card (2024)

Some financial advisors suggest that consumers should never buy anything with a credit card and should only use cash for purchases. The philosophy behind this advice does have some merit, but for those that use credit responsibly, there’s a whole host of benefits. In fact, for some types of purchases, failure to use a credit card can actually be a mistake, as you’d be forsaking various forms of protection and benefits.

Although the caveat is always there that you must use your credit responsibly, here’s a list of purchases that you should always consider making with a credit card.

Depending on the type of card you have, you should always buy appliances and electronics on credit. Beyond any points that you might earn, many credit cards offer extended warranties on purchases of electronics and appliances.

For example, if you buy a dishwasher with a one-year manufacturer’s warranty, your credit card company may double that warranty period to two years. Some credit cards also offer damage and theft purchase protection. If your purchase is damaged or stolen within a certain time period, usually 90 to 120 days, your card company will repair it or reimburse you for the purchase, up to certain limits.

Flights are among the most obvious purchases to make with credit cards. For starters, many rewards credit cards offer additional bonus points for the purchase of flights. However, most travel-oriented credit cards offer many additional perks for flight purchases. Some cards offer free trip delay or cancellation insurance,while branded cards often grant free baggage privileges for flights purchased using the card.

Many travel cards also offer lost luggage insurance, reimbursing you for your bags and their contents if they don’t turn up. Once you begin your trip, some cards offer free access to airport lounges as well.

Some travel-oriented credit cards offer car rental insurance, allowing you to decline the expensive coverage that car rental companies typically charge. In some cases, this insurance is primary insurance, meaning you won’t have to involve your own car insurance company at all. Some cards also offer free enrollment and premium status in various car rental rewards programs, which can provide access to car rental discounts, free upgrades and other perks.

Using a credit card for a car rental can also make it easy to check out when you return your car, as you can often simply leave the car, walk away and receive a receipt in your email.

No one can predict with certainty if they’re going to return something after they purchase it. However, if you feel like there’s any chance that you might want to make a return at some point, buying that item with a credit card is a good move. The primary reason for this is that sometimes merchants are reluctant to live up to their return policies. If you’re trying to return something and the merchant won’t take it back, you can usually file a complaint with your credit card company.

In most cases, the credit card company will conduct an investigation and refund your purchase price if they can’t get the merchant to capitulate. Obviously, this doesn’t apply to cases of fraud or abuse, but for most legitimate transactions, you’ll have the backing of your credit card company.

Sometimes, you want to buy a product but you may have questions about the vendor. Usually, this happens with an online storefront, but it could also come in the form of a street vendor that uses a portable credit card machine. In any event, it’s imperative that for a transaction like this you use a credit card rather than cash or other payment options.

If the merchant delivers a shoddy product or vanishes off the face of the Earth after your purchase, you can file a complaint with your credit card company to investigate and get a refund. If you pay with cash instead, you’ll never see that money again. A credit card can also protect you from any fraudulent transactions that an unscrupulous vendor may make using your card.

If you’re going on an international trip, be sure to pack your credit card with you. Credit cards generally offer better exchange rates than foreign vendors or money changers, getting you more value for your money. Some overseas merchants may not even accept U.S. debit cards or American money, so using a credit card can be much more convenient. Although some credit cards charge international transaction fees of 3% or more, there are plenty of cards that have no foreign transaction fees at all. Before you travel, be sure to verify that your card falls into the latter camp.

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