It’s a misplaced notion that owning a Credit Card makes you a spendthrift. In fact, Credit Cards are one of the best creations ever, right after the wheel. They keep your financial life moving, and if dealt with properly, can help restructure your finances for the better.
Of course, as with all things smart and beautiful, there is always the temptation to get carried away. But, overspending using your Credit Card is a reflection of your poor money management habits rather than that of a vice inherent in the product itself.
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When you get a Credit Card, treat it like a magical tool that can set your finances right. Remember that you have to repay what you spend whenever you use your Credit Card. Keep checking your credit statement online to keep a tab on what you have spent and what you can afford.
A Credit Card doesn’t work like cash or a Debit Card. Hence, it is important to figure out which Credit Card purchases can give you a host of advantages.
Here are seven things you should ideally buy using your Credit Card. Time to make the most of all the cashback, fee waiver and reward points you can earn with it. There is one more advantage. You don’t have to carry wads of cash to make big transactions. Your Credit Card won’t ask for more space in your bag just because you want to swipe big. It’s quite friendly like that.
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So, which purchases merit the use of a Credit Card? Here’s the list.
Online Shopping: The e-retail industry is a wonderful thing. Everything you could possibly need—clothes, utensils, technology—is available online. You can order products or request for a certain service from the comfort of your home and have it delivered at your doorstep. No more venturing out in the sun, heat, and rain if you don’t want to.
Moreover, when shopping online, you can customise your search requirements, compare options and prices, and even get discounts that won’t be available in brick-and-mortar stores. All this and so much more in just a few minutes.
Online shopping is a creation of the modern world. So, why pair it with something obsolete like hard cash or something simplistic like a Debit Card? Online shopping and Credit Cards are meant for each other.
When you shop online, you may have noticed that you can avail certain offers and discounts only if you pay using your Credit Card. This is the first and foremost benefit of using your Credit Card online.
Secondly, the encryption and protection settings on Credit Cards are much stronger than on Debit Cards. Safety is the first priority.
Lastly, since you are paying from the safety of your house, you do not have to worry about peeping toms trying to memorise your card number at store counters. And, of course, using your card earns you rewards.
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Flight Tickets: Initially, there weren’t too many Credit Card options out there. Banks realised that not all people have the same spending pattern or requirements. They figured out that one Credit Card won’t do for all. So, the banks got cooler and created different types of Credit Cards.
Ever heard of Travel Credit Cards? These cards were created keeping in mind the needs of frequent business travellers, globetrotters, backpackers, and basically anybody who lives out of a suitcase. Book a flight using an All Miles or a similar travel-oriented Credit Card and you can earn big discounts on your flight tickets.
These cards allow you to accumulate points for each flight ticket you book and then you can redeem these points to purchase another flight ticket for yet another journey. Guess what? This isn’t the only benefit. Some high-end travel Credit Cards give you access to restricted airport lounges, free in-flight meals, upgrades to business class, and discounts on hotel bookings, among other benefits.
Do you think you can get so much using a Debit Card or cash? No. If you are a traveller, click here to get a great Travel Credit Card.
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Hotel Booking: Just like with online shopping and flight tickets, you can get a discount on room prices if you use your Credit Card to pay for your rooms. With time you can accumulate points and redeem them on your next hotel booking. Don’t be surprised if a hotel offers you discounted meals just because you used a Certain Credit Card to pay the bill.
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Big Expenses: If you are solely dependent on Debit Cards or cash, you’ll have to save and make plans to buy big-ticket items. However, if you are looking to buy a phone, or a TV, or a refrigerator, you can do so instantly using your Credit Card. Just make that big swipe and break up the amount into smaller, affordable EMIs.
Without a Credit Card, you’d have to save up or go through the tedious process of applying for a Loan. Credit Cards let you buy things you need in the present and let you pay for it at your convenience. Also, a lot of e-retailers tie up with certain Credit Card companies for exclusive deals. Benefits galore!
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Shopping: Going shopping? Use your Credit Card. There are many advantages. First, you don’t need to worry about running out of money. The second advantage is the cashback benefit. When you shop using a Shopping Credit Card a certain percentage of what you spend is returned to your account. This is particularly useful when you go on a shopping spree. You’ll get back at least some of that money you spent impulsively.
If shopping is the biggest expense of your life, then switch to a shopping and Cashback Credit Card. You can even get discounts on grocery shopping with this Credit Card.
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Dining and Movies: Is there a foodie in you itching to try out all the restaurants in the city? Then get a Lifestyle Credit Card. You get benefits like discounts at fancy, high-end restaurants and even free movie tickets.
When we ask you to save, we tell you to keep money aside for various expenses and to use what’s left over for discretionary spending. Often, this amount is small. However, a Lifestyle Credit Card can mitigate this trouble. All the discounts and free tickets you avail through this type of card will help you go that extra mile with the money you’ve set aside for recreation.
You can start with a Lifestyle Credit Card and later upgrade to a Premium Credit Card as your monetary situation improves. A Premium Credit Card will give you the best of all worlds – from travel to rewards, you’ll have it all.
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Fuelling Up: If you are someone who likes to drive, participate in rallies or races, or take frequent road trips, then tank up with a Fuel Credit Card. You earn points every time you refuel your car and get cashback as well. Many fuel cards also offer rewards if you spend on movies and groceries too. So, go on a drive, stop for a movie, pick-up groceries on the way and earn points for all that money you spent.
There is so much Credit Cards can do for you that Debit Cards and cash cannot. Having a Credit Card is a good way of ensuring that you always have extra money should you need it in case of an emergency. Moreover, using your Credit Card wisely is a sure shot way of upping your Credit Score. But only if you pay your bills on time! So, don’t miss your due dates and don’t stick to paying the minimum due on your Credit Card.
A good Credit Score means that banks will readily give you loans and other financial help when you need it. But, be wise and don’t become a spendthrift. A Credit Card is a financial tool to help you better manage your finances. Not make it worse.