Do you buy everything with your credit card? As I’ve learned, there are some pros and cons when using a credit card so I’ve figured out a way to optimize the use of cash or card for my purchases.
I get some perks using my card – points, flier miles, and the occasional 0% installment plans. However, there are perks in using cash too. Some merchants are more than happy to provide discounts for cash purchases since they don’t have to shoulder the bank fees when you use the card.
Here are the stuff I buy using my credit card. I get to earn points and miles on my credit card and merchants often don’t provide discounts when you buy cash.
1. Groceries
2. Small household items
3. When a 0% installment plan is made available.
For more pricier items such as larger appliances and electronics, I usually evaluate whether I go for cash or card. Since they’re pricier, the discounts for cash prices can be enticing.
Even with a 0% installment plan, the discount from a cash purchase can be more than enough to trump the “ease” of deferred payments.
The bottom line still is to only purchase items using your card that you can purchase in cash and that you promptly pay your card statement.
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Tags: Consumer, Credit Cards