5 things you should buy with a credit card
PUBLISHED ONJanuary 23, 2016 2:30 PM
This article was originally on GET.com at: 5 Things You Should Buy With A Credit Card
Is cash really king? Definitely not when it comes to maximizing the rewards of your credit cards. Credit card rewards and privileges rank high on the priorities of why Singaporeans sign up for cards in the first place; you can bet that banks go out of their way to ensure that exclusive rewards and discounts are tailored to their cardholders.
Here are five things you should buy using a credit card, given the substantial rewards that comes with the spending.
1. Air Tickets
Air tickets cost between a few hundred to thousands of dollars, and if you buy them with a credit card it can help you accumulate points/miles or cashback substantially, depending on the type of rewards credit card you have.
It is especially beneficial if you use a travel credit card that lets you earn air miles, since miles generally have better value for money than points or even cashback when you redeem them for plane tickets.
If you use a travel credit card (that offers rewards on travel purchases) to buy your plane ticket, you will be earning rewards that you can use towards your next trip.
Credit cards that focus on travel rewards and air miles are perhaps best for frequent travellers, since they often come with travel-related privileges, such as access to VIP lounges at airports, free travel insurance and additional rewards (cashback, points or miles) on overseas spending.
Here's our pick of the 2 best credit cards with travel insurance. If you're looking for a travel credit card that offers cashback on your purchases, check our pick of the 2 best cashback credit cards for travellers.
2. Hotel Bookings
Similar to the purchase of air tickets, hotel bookings usually range from a few hundred dollars to a few thousand for a single vacation.
There are many third-party sites such as Agoda.com and Booking.com that allow consumers to find and book hotels directly through their sites.
Riding on the increased popularity of such websites, many banks are also tying up with these merchants to offer cardholders discounts.
What's more, some of these sites simply put a hold on your credit card after booking instead of directly charging it so there's no hassle of refunds during last-minute cancellations.
3. Furniture or household appliances
The great thing about using your credit card to buy expensive items is that you do not need to worry about withdrawing a huge amount of cash from the ATM machine and grapple with the fear of carrying a large quantity of cash with you.
Other than being convenient, most furniture or department stores selling household electronic appliances allow you to pay with interest-free instalments if you use certain credit cards.
This means you can spread out your payments for essential household items without having to worry about rolling over your monthly credit card bills and incurring high interest payments.
4. Petrol
For those of you who don't have the benefit of claiming petrol expenses from your company, spending on petrol is a necessary evil if you are a car owner.
Many, if not most car owners spend hundreds of dollars a month filling up the tank. If you want to save a huge amount at the pump, the best way to do so is with the right credit card.
There are many credit cards in Singapore that give you petrol savings. For example, if you use Citibank DIVIDEND Card MasterCard to make your petrol purchases, you can save up to to 20.88 per cent at Esso, up to 20.80 per cent at Shell and you can earn 8 per cent cashback at all other petrol stations. Pretty good, right?
You can also check out the best credit cards for petrol savings here.
5. Luxury Products
We know many Singaporeans buy luxury products overseas, especially the bag-loving office ladies when they travel to Europe.
For example, if you use Citi PremierMiles American Express Card abroad, you can earn 2 Citi Miles for each $1 spent overseas. Another card that lets you earn rewards while travelling is OCBC Titanium Credit Card, which lets you earn 2.5 air miles for each $1 you spend overseas.
So as you can see, using a credit card for these purchases can really save you a lot of money, by giving you cashback or rewards points/miles.
Remember to repay your credit card bills by the end of the month so as not to incur any interest. The best way to do that is by GIRO deduction from your bank account that is linked to the credit card account (read our list of 4 smart ways to pay your credit card bill on time).
That way, deductions are made automatically each month, without you ever forgetting to pay or missing any payments!
Would you like to save even more? Check out these 4 ways credit cards can help you save money.
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