Purchases You Should Always Charge

5 Types of Purchases You Should Always Charge on Your Credit Card


Credit Card is an instrument that allows you to make instant transactions based on credit. Irrespective of what your account balance is, you can make purchases depending on your credit limit. These are payable at the end of a specific credit cycle, along with an option to pay a minimum amount and carry forward the dues with extra charges.

Responsibly using a credit card not only improves your credit ratings but also allows you to earn rewards and cashback. 

Depending on your spending behavior and purchase patterns, find out the best credit card for your needs, and get the most out of it. 5 Types of Purchases You Should Always Charge on Your Credit Card-

Why choose Credit over Debit Cards?

Firstly it helps in building a credit history. Having a good credit history and score will translate to getting loans easily. Loans on credit cards are also available

Credit Cards offer way more services and rewards than debit cards. For e.g. Lounge access, Fuel points, frequent flier miles, etc. 

Payment of credit card dues has to be done at the end of a specific period. That means you get to keep the money in your bank account for a longer duration. You’ll receive more interest and adding it to the points gained with the credit card, it’s a sweet deal. 

For a maximum benefit, these five types of purchases are recommended on your credit card:

Service Provider Costs

The most widely used application of a credit card is the payment of on-demand video, music, and gaming services. Typically any subscription-based service requires a credit card for easy recurring payments without you having to worry about it. It is highly secure and payments are auto deducted at a fixed date. Similarly, you can also pay your electricity bills, gas bills, phone, and other bills via credit card.

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Travel expenses

Many credit cards offer cashback and reward points for booking flights and train tickets. These then can be used to purchase tickets at a considerably less amount! If you are a frequent flier or traveler, you should find out the best credit card for the same purpose. 

Additionally, most credit cards offer lounge access in airports too. This is a huge incentive for people who travel regularly. 

For people traveling internationally, an international credit card offers the flexibility to pay or transact in most foreign currencies. Do note that there are certain currency conversion and service charges applicable, which is a small fee to pay for the convenience offered. 

Big Ticket Items

Equated monthly installments or EMIs as we know it, have been a boon to consumer spending. Most of the costly gadgets, jewelry, electronics, appliances, and pieces of equipment are bought in EMIs on credit cards. There are many banks and NBFCs that offer different rates of interest and offers on various consumer goods and electronics. If you are someone who is looking to buy an expensive product, trying finding out the best credit card suited for it. 

Some credit cards also have purchase protection enabled, which is basically short-term insurance for products bought with your card. The products covered and terms of insurance vary from one card to another. 

Petrol/Diesel for your Vehicle

Almost all credit cards now offer a cashback or increased reward points on payment for fuel. 

There are a few niche credit cards offered by some financial institutions which offer higher rewards on such payments. Try to search for the best credit card which offers the maximum fuel points. Almost all fuel companies viz. BPCL, IOCL, HPCL, etc. have tie-ups with banks and NBFCs to offer special credit cards. 

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Ordering Anything Online

With the rise of the e-commerce industry, digital payments have increased multifold. In India, the majority of digital payments include payment via cards(credit/debit) and UPI. 

Credit cards offer a vast array of exciting discounts and rewards on payment for a large number of vendors and product purchases. Groceries, restaurants, clothes, jewelry, shoes, electronics, you name it, there will be a credit card best suited for it.

Additional Features and Benefits 

Many people are unaware of the numerous benefits offered by the credit cards they hold. Reward points are a common benefit for all credit cards, which can be redeemed for cash or some service or product offered by the company. Some credit cards have purchase protection enabled that insures buyers against possible theft/misuse of the card, and the product purchased with it for a certain period of time. 

Some new credit cards offer personal accident and hospitalization coverage up to a certain amount. Additional riders like life coverage can also be added.

Which Credit Card do you use

There are a lot of credit cards available in the market with different benefits and its quite easy to get yourself confused as to which one is the best credit card for you. Since everyone’s spending pattern is different, you need to find out the best credit card for your needs. However, having too many credit cards may affect your credit score. So choose a few credit cards, which offer good rewards and points on things you spend the most. Also, always remember to pay your dues on time. Using a credit card responsibly can surely make you more profitable in the long run. 

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