Cash and debit cards are often seen as the safe bet for people who watch their spending. But if you've got the ability to use credit cards without running up debt, they can be better for your wallet—especially with certain kinds of purchases. Not only do credit cards help you build credit, but they prꦫotect you from fraud and often come with valuable rewards and insurance coverage. Rewards are like "free money" for consumers who are consistently able to pay off their card balances, never having to pay costly interest fees.

Electronics and Appliances

Not only is it a great idea to purchase big-ticket electronic items on your credit card because you can rake in the points, but many credit cards also provide some kind of insurance on these items when purchased using a card. The most common of these insurances come in the 澳洲幸运5官方开奖结果体彩网:form of an extended warranty, often doubling the length of time the manufacturer provides. Some cards may also offer 澳洲幸运5官方开奖结果体彩网:price protection that will cove⛎r the difference if the price of an item decreases within a specific period of time after you buy it.

Similar to electronics purchases, you'll want to use your credit cards to purchase home appliances. Cardholders can enjoy some additional security and insurance on their purchases, such as the ability to double up on the warranty period, or occasionally price protection.

Travel Arrangements

Many credit card issuers offer travel perks. This often comes in th🐟e foﷺrm of cancellation or trip interruption coverage if a booking is made with that card. Some cards also offer coverage for lost luggage or even emergency medical coverage. This can save you from having to pay for a separate travel insurance policy, or reimburse you for covered expenses if you go without travel insurance altogether.

Booking with a travel-themed credit card allows you to double up on benefits, as these cards tend to offer an even higher rate of points awarded on travel-related purchases. These are benefits you won't get from using a debit card or cash for travel.

Car Rentals

Many credit cards offer some level of 澳洲幸运5官方开奖结果体彩网:rental car insurance to cardholders who book using the card. This coverage is typically not as thorough as it is if you pu🥃rchase insurance through the rental company, but it usually does include some collision coverage, though not typically insurance for liability or injury.

Overseas Purchases

If you have a credit card that offers no 澳洲幸运5官方开奖结果体彩网:foreign transaction fees, credit cards are a good option when you're traveling abroad. It is generally safer to carry around a credit card than to lug around large sums of cash 🥂since it's easier to cancel a credit card if it gets lost or stolen than to recover lost cash. Some credit car🌠d companies offer a more favorable exchange rate than a currency exchange office, so this can save you money compared to converting a lot of cash (and possibly having to convert unused portions back again when you go home).

You'll also be better protected when using credit versus debit because a credit card is not directly linked to your bank account. Just remember to contact your card provider before you leave home to advise the company on your travel itinerary and to discuss any card security concerns. And if you're not sure whether your card charges foreign transaction fees, get that question answered as well.

Online Purchases

You'll usually need to use some form of card to make an online purchase. While debit cards work fine in this regard, credit cards provide stronger liability protection by law for 澳洲幸运5官方开奖结果体彩网:fraudulent purchases, which can really help cardholders if🔴 their credit card information happens to fall into the wrong hands. Though many debit cards will offer some similar coverage, the length of time given to report these fraudulent charges is typically shorter.

Some credit cards even offer protection in case the article you purchase online is lost or damaged in transit. Always keep in mind when buying online you should never send card information over email or text message. You should also avoid any websites that don't use a secure payment site. You'll know the site is secure when you see a lock icon on the browser, or the website address begins with "https" instead of just "http."

Cellphone Bills

Do you live in fear of losing your cellphone? If you consistently pay your cellphone bills using your credit card, your card provಞider may actually offer you some coverage in case your phone is lost, damaged, or stolen. Thi🥀s coverage typically requires that you pay your your phone bills with that card and are up-to-date with payments. And beware that there are typically a large number of restrictions in this insurance coverage. For example, you may not be able to make a claim if your cellphone gets swept away in a flood or if you miss a cellphone payment. Also, anyone using this coverage is typically required to pay a deductible.

The Bottom Line

Even though there are many times that your card offers perks, there are also plenty of times you should not use a credit card to make purchases. First and foremost, don't use credit cards when you don't have the cash to cover your purchase. You should also avoid making purchases anywhere that you're concerned about the safety or security of your card. This includes any times where the card will be out of your sight. This is common at many gas stations or restaurants where the server or attendant takes your card to a different location to process the payment.

Think of credit cards as a convenience, not a necessity. It's nice to collect points on your credit card, but not if you're paying huge amounts to the card issuer in the for﷽m of interest. For this same reason, you should not uꩲse your card for cash advances. You often end up paying a higher rate of interest, and you start paying interest as soon as you make the withdrawal, unlike on༒ conventional card purchases where you are given a grace period.