Using credit cards correctly is something that must be learned. These banking tools can help you avoid scams or save some money, but they can also lead to bad investments.
Freddie Huynh, vice president of data optimization at Freedom Debt Relief, revealed that particular care should be taken with how credit cards are used, Just Money published.
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What purchases should be made only with credit cards
According to the expert, the credit card can be used for:
Travel shopping. Because most national and international airlines, hotels and car rental companies require a credit card to book or make payments.
To shop online. In this sense, Huynh explained that “if you find a fraudulent purchase charged to your account, you can report it to your card issuer.” The expert added that while the bank issuer is investigating and resolving what happened, the affected person will not be responsible for the charge.
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Retail in stores. At the same time, Gary Grewal, CFP of Financial Fives, indicated that not so large purchases from supermarkets or pharmacies should go on a credit card. However, consumers can also use cash if they are trying to save or be more disciplined and avoid taking on debt.
What purchases should not be made with credit cards
According to Baking Rates, there are other purchases that should not be made with a credit card, especially those that are for amounts of thousands of dollars, since the interest rate can be a factor that increases the debt.
Buy cars with credit cards. It should be avoided due to the high interest to pay, so they recommend saving as much as possible to disburse cash and absorb most of the cost.
Medical services. A charge from a medical provider to a credit card immediately becomes a credit card debt instead of a medical debt. Cardholders will pay regular credit card interest rates accordingly, so this is not recommended.
(YO)
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Source: Eluniverso
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