(MoneyHippo.com) – Maybe you’ve heard carrying credit card debt is the enemy of future wealth, robbing you of interest dollars you could be saving. While that’s true, there’s a way you can use credit cards to your advantage, so long as you pay your balances off before the end of the month. Here are three items you should always consider using a credit card to purchase.
- Travel: Buying airline tickets with a credit card offering miles or cash back can help you earn points you can turn in later for a reduction in airfare or money back towards purchases. Some cards even offer travel insurance to cover trip delays, lost luggage, and trip cancellations. Similarly, charging a car rental could provide additional insurance for accidents, rental discounts or free upgrades.
- Online Shopping: Making purchases online, especially from unfamiliar vendors, can be risky. Using a credit card can give you an extra layer of protection against fraud while giving you cashback on every purchase.
- Big-ticket Items: While shopping with a credit card can provide cashback on more expensive items, there may be an additional perk for appliances and electronics. Some credit cards offer warranties beyond the limited one that comes with your purchase. Check your card to see what it has to offer.
See what benefits each credit card offers and pay them off completely before interest accrues to make the most of your credit card purchases. Using cards strategically while avoiding debt is the best way to garner the perks without putting a drain on your budget.
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