When we make purchases, we have four basic ways of paying for them: cash, a personal check, debit or credit card. Each of them has its own advantages and disadvantages, which make it suitable in some situations, but not in others. Yet, if we had to choose one of these payment methods, which is suitable in a large number of situations and is most commonly used today, the winner would probably be the credit card. Indeed, thanks to its buy-now-pay-later feature and ever increasing benefits, the credit card has become the most convenient and popular payment instrument in the world today. Below are some of the places and occasions when you can and should use your card.
1. Internet
The credit card is ideal for making purchases online. It provides greater protection than the debit card, which is directly linked to a checking account and hence rather vulnerable. Also, it is accepted by practically all websites for e-commerce. What’s more, many online retailers offer special bonuses, e.g. rebates, free shipment, etc., when you buy goods from them with a credit card.
2. Big-ticket products
When you buy big-ticket items, it is preferable to use a credit card because, unlike the debit card, it offers dispute rights that can help you if something goes wrong with the items. Many credit card issuers also offer extended warranty and purchase insurance, which make big-ticket transactions even safer.
3. Deposits
Any time you have to make a deposit, e.g. in order to rent a vehicle or equipment, it is better to use a credit card than a debit card. In this way, you will retain access to all the money in your bank account while giving the requisite deposit to the supplier.
4. Gasoline stations
Many gas stations offer credit card holders the opportunity to pay their bill at the gas pump where they tank up, which helps them avoid standing a line inside the station and saves much time.
5. Recurrent Payments
Some bills have to be paid on a regular basis. With most credit cards, you can set up standing orders which will automatically make your periodic payments, relieving you of the need to settle them yourself.
6. Hotels
Nowadays, you can’t find a good room unless you book it at least a week in advance. The easiest way to do this is to use your credit card. Hotel bills are also covered best with a credit card.
7. Travels
Booking a flight or trip with a travel agency may not always be possible with a debit card. However, there is hardly an agency in the world which will decline a credit card, provided that you have enough funds to pay for your ticket.
8. Student expenses
Books and tuition fees are expensive, and most students cannot afford to pay them at once. This is where a credit card comes particularly handy, as it allows students to pay their fees on time, even when they don’t have the necessary cash to do so.
9. Instant-Payment/ Later-Delivery products
We often have to purchase products which take some time to arrive. Not infrequently, these come damaged or with some defects. If you use your credit card to pay for such later-delivery goods, you enjoy dispute rights and perhaps also insurance coverage, which can help you obtain refund for any below-standard products you receive.
10. Restaurants and Retail Stores
Many restaurants and retail stores feature devices which will charge your card by simply touching it, without any swiping or PIN typing involved. If your card supports this payment option, i.e. if it has an RFID chip installed, you can wave goodbye to wasting time on never-ending queues.
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