Why I do all of my most expensive purchases with a credit card

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Whenever I buy something that costs a lot of money, there is a payment method that I always use first. I put all possible expensive purchases on my credit card, rather than paying cash, writing a check, or using some other method of financing.

There are a few big reasons why I chose to pay on credit for every big expense, as long as the merchant or service provider accepts cards. Here is what they are.

1. I want the protection of a credit card

When I buy something expensive, I don’t want to end up wasting money on the purchase. My credit cards help reduce the chances of this happening.

My cards offer important purchasing protections, such as an extension of the manufacturer’s warranty. If the merchant does not deliver the item or it is not as promised, I can dispute the charge with my card issuer as well, and it will work to collect the money for me.

If I paid cash for the expensive items I buy, I wouldn’t get these benefits. Once the money was spent, it would disappear if the merchant did not meet his obligations. I also wouldn’t get an extended warranty unless I paid extra to buy one.

2. I want to earn rewards by credit card

Another major motivator that drives me to make expensive purchases on my credit cards is credit card rewards.

One of the cards I use offers generous cash back rewards that I can deposit directly into an investment account. Every time I buy something expensive, I get a small portion of the money I spent and use it to secure my future.

This cash back covers the cost of my purchase and would not be available with any other payment method, such as cash or a personal loan.

3. I am sure that I do not owe interest on my cards

Finally, the last big reason I use credit cards for all of my expensive purchases is that I’m confident that I’ll be able to pay off the cards before I have to pay interest on them.

This is because I only buy big ticket items if I budgeted for them first or saved for them over time. I put the purchase on a credit card and as soon as the bill arrives I can pay it. I end up reaping the benefits of cardholder rewards and protections without adding any additional fees.

If I had to borrow to finance an expensive purchase and pay it back over time, credit cards probably wouldn’t be my way of doing things – unless I can get a card with a 0% promotional rate and feel confident. to be able to fully repay the balance before the rate increases. This is because there are cheaper sources of funding, such as personal loans, and the high interest rates of credit cards on standard cards minimize the value of cardholder benefits.

Since I won’t have to pay interest, the benefits of rewards and shopping protections make credit cards the only payment method that makes sense to me when I’m buying something that costs a lot of money. money.


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