Trips, small purchases at supermarkets and pharmacies can be done with credit cards, according to Freedom Debt Relief.
It is common for people to use several credit cards to make purchases, the reality is that this is not necessarily seen as a good idea, according to personal finance experts, since there are expenses that should only be assumed on a single card.
Under this idea, Freddie Huynh, vice president of data optimization at Freedom Debt Relief, announced that Americans should be particularly careful with the way they use their credit cards, especially what they will spend on them. .
According to the expert, the credit card can be used for travel purchases largely out of necessity, which is why most national and international airlines, hotels and car rental companies request a credit card to reserve or to make Payments.
Freedom Debt Relief indicated that if you intend to make purchases online, you must do so with a credit card. In this sense, Huynh said 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. Reason why it is recommended to use only one card for this type of purchase.
Online purchases or travel are not the only purchases that are recommended to be made with a credit card, Gary Grewal, CFP of Financial Fives indicated that not so large purchases from supermarkets or pharmacies should go on a credit card.
On the other hand, Grewal indicated that consumers can also use cash in these types of places, especially if they are trying to save or be more disciplined with their budgeting habits, avoiding acquiring debt.
According to Baking Rates, there are other purchases that should not be absorbed by 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.
Expert research suggests that Americans should avoid buying cars with credit cards, so they recommend saving as much as you can to shell out cash and absorb most of the cost, so look for fixed-rate financing.
In addition, Freedom Debt Relief recommended that before you charge a medical provider to a credit card, it immediately converts to credit card debt instead of medical debt. Cardholders will pay regular credit card interest rates accordingly, so this is not recommended.