When Should I Pay With Credit?
Anyone who is looking to rebuild their credit is probably trying to use their credit cards as infrequently as possible. While paying cash is a great way to keep your spending in check there are a few charges that much safer going on your card.
Why Charge It?
Unlike cash and prepaid cards charging a purchase gives you protection if you don't get what you pay for. If you fall victim to a scam or simply pay for something and never receive it you have no recourse aside from going to court to get your money back if you pay with cash or a prepaid card. With credit you have protection from the lender and can easily dispute the transaction without having to hire a lawyer.
What Kinds Of Things Should I Charge?
You should always charge tickets to concerts and sporting events. Fraudulent tickets are big business and in the age of the internet you really can never tell if the ticket you buy is legitimate unless you buy directly from the source. Charging these tickets gives you protection if you get to the entrance and your tickets turn out to be fake - you can dispute the charge and won't be out a good chunk of change permanently.
While traveling it's also wise to utilize your credit card. When booking a room or other service that could be cancelled or changed abruptly it is good to have it on plastic as to not affect the amount of cash you have on hand.
You never want to be in a foreign country without a reliable source of cash and putting these big charges on a debit card can seriously affect the amount you have access to. Additionally airlines and hotels often have points or other offers that cardholders can take advantage of to make travel a little less expensive.
The big rule in keeping your credit cards in check is to avoid charging everyday expenses like bills, rent and food. Those infrequent purchases or services may be good candidates for your credit card so you can ensure you are getting what you paid for and keeping those big one time hits out of your checking or savings account (you should always pay it down quickly anyway).
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