High-end purchases can make life worth it. Being able to spend like this means you work hard and make enough money to enjoy life. However, when it comes time to pay for them, you need to decide on cash versus credit. Here are seven high-end purchases you should always use a credit card for.
Why Use a Credit Card for High-End Purchases?
Fool lists not one but four good reasons why big purchases work best on credit cards:
- Benefit From Warranties and Protections
- Get Help If Things Go Wrong
- Pay Things Off Over Time
- Earn Rewards
In addition to these reasons, you should remember that every time you use credit, you build more credit. As long as you keep paying down your balances and use your cards responsibly, you’re boosting your credit score. That’s something that will save you lots of money over time on everything from car insurance to financing your home. In some cases, a good credit score is even a necessity for getting a job that you apply for.
Everyone’s definition of high-end might vary, but these are seven specific categories of purchases that can qualify as high-end most of the time. They’re certainly all things you should use credit cards for the reasons listed above. Sometimes, you also just have to!
- Appliances: Refrigerators, air conditioners, freezers, ovens, dishwashers, and laundry machines are all potential high-end appliances you can add to your home. Many credit cards automatically give you extended warranties over the items you buy with them.
- Travel Accommodations: Whether you spend a night in a hotel or a week on a cruise, credit cards are often required just to secure bookings on your next adventure.
- Electronics: Video game consoles, computers, tablets, TVs, and smartphones can cost hundreds to thousands of dollars. As Investopedia points out, some cards offer price protection if prices go down after you buy something.
- Travel Arrangements: From airfare to car rentals, many credit cards will help with anything from lost luggage to collision coverage insurance.
- Event Tickets: Lots of credit card companies actually have partnerships with venues and event promoters. These arrangements can mean getting pre-sale access or just discount tickets.
- Overseas Transactions: Debit card use can be spotty overseas. Sometimes, it won’t even work at all, and even if it does, there might be interest and fees. Credit cards should be accepted nearly everywhere.
- Dining Out: Want to enjoy a fine meal? Take a bite out of the bill since many cards offer up to 5 percent cash back on nearly all restaurants.
Deciding on a high-end purchase is the first step. Choosing to use a credit card over debit, cash, or check is a second step. Picking which card to use is the last choice you’ll have to make.
If you’re not sure which credit card is best for you, then look over the options available to you by using a credit card comparison site. You can pick from cards based on interest rates, perks, points, balance transfers, cashback, and more.