Top 5 Credit Card Purchases That Make Total Sense

There are so many things you can easily buy with a credit card. Yet, there are some credit card purchases that make more sense than others.

It is those credit card purchases that we will be referring to and exploring in this post.

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Read on to learn about the top 5 credit card purchases that make the most sense.

1. Major Appliances

Bigger appliances like large-screen televisions, home theatre systems, washing machines, etc are fairly well suited for credit card purchases. After all, they tend to cost a tidy sum and can be somewhat difficult to purchase when trying to do so directly out of one’s own pocket.

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On a credit card, though, it is much easier to make the payment, install and start availing the appliance(s) in question, and then gradually pay back the money spent on the purchase.

Sometimes, such purchases on credit cards are available on an EMI or Equated Monthly Installment basis. This means that at the time of purchase, you can choose the EMI option for a certain number of months and you will pay a flat amount for those months to pay it back, with most additional charges and fees being waived.

This is a common practice in many markets, allowing folks to make purchases for consumer appliances on their credit cards, without undue concerns about large payments having to be made in one go.

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2. Travel Expenses

Most travel expenses like hotel bookings and flight tickets are easily incurred on credit cards and today there is simply no other mode of payment that makes greater sense as compared to credit cards.

One reason why travel expenses are best made as credit card purchases are the numerous rewards that can come from doing so. For instance, additional reward points over and above regular ones along with air miles accrue on flight tickets booked using certain credit cards.

Similarly, hotels and travel agencies often have partnerships with banks and credit card companies such that additional benefits accrue when specific credit cards are used to make bookings.

3. Regular Bill Payments

A lot of the bills that we pay are recurring in nature, like streaming services, utility bills, and internet and cable bills. These bills need to be paid regularly, typically on a monthly basis.

Such payments are ideal for being made as credit card purchases. You can set them up to be automatically paid from your credit card, either on or before their due dates. Since those dates tend to be fixed, it’s easy to set them up that way.

You can then set up a direct debit arrangement to pay your credit card bill straight from your bank account.

A lot of customers opt for this arrangement so every recurring payment is taken care of: first by their credit card, and then to their credit card from their bank accounts.

This certainly helps manage payments and expenses, while being able to harness all the benefits that come with credit card usage. Otherwise, credit card inactivity is a risk that is always looming large.

credit card purchases

4. Tax Deductible Payments as Credit Card Purchases

There are a number of payments on which you can receive tax rebates, come tax-filing time.

Now, the logic in this scenario as far as making these payments on your credit card is that they help track down such transactions easily, which you can then present when filing your tax returns.

Otherwise, tax-deductible payments made haphazardly are difficult to keep up with. And we all know how there is a panicky scenario that emerges every single time, come tax filing season.

Payments that should be made as credit card purchases include the following.

  • Eligible expenses incurred in the day-to-day running of your business
  • Educational expenses that qualify for tax deductions
  • Healthcare expenses
  • Expenses on childcare
  • Qualifying charitable donations

5. Online Purchases in General

The majority of online shopping purchases are best made on a credit card, and there are some instances where credit cards are the only possible mode of payment. For instance, debit cards are not easily accepted on many merchant sites for cross-border payments. With other local payment options possibly not feasible, credit card purchases remain the only viable payment mode.

Also, security is a decisive factor when it comes to making credit card purchases over the internet. For all credit card merchants, online security is something they take very seriously. When you use your credit card to make online purchases, there is at least some degree of purchase protection available to you.

Final Notes

As we have clearly highlighted above, there are some payments that are especially suitable for being made as credit card purchases.

As a savvy customer, you should definitely be looking to go ‘credit card shopping’ on these transactions!

Disclaimer: All credit products carry risk. Be aware of these risks by reading the associated terms and conditions.