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- Using a credit card has a lot of advantages, like building credit history and giving time to pay off big purchases.
- There are certain categories that you should always use your credit card for.
- Discover's Cashback Match program offers money back in certain categories, as well as a year-end match.
Using a credit card isn't just convenient; it can save you money, provide more time to pay off purchases, and protect against fraud.
"You should put every expense you have on your credit card so long as it doesn't cost you anything extra," says Ryan Craggs, the editor-in-chief of CardCruncher, a credit-card-recommendation startup.
Another plus to using credit cards is that most of them have zero-liability assurances for fraudulent charges, Craggs says. For example, Discover offers its $0 Fraud Liability Guarantee, which means its cardholders are never responsible for unauthorized purchases.
Though most things are good candidates for credit-card purchases, there are a few categories where you should always use plastic to pay.
- Travel
Booking your next trip on a credit card can make paying for travel easier and sometimes more rewarding. For one, trips are expensive. Factoring in flights, hotels, taxis, and entertainment, you're usually looking at a few thousand dollars in payments.
Credit cards, by nature, allow you to pay for purchases incrementally. So if you're faced with the trip of a lifetime, but don't have the cash on hand today, a credit card can make the dream of travel a reality. Just be mindful of potential interest and try to avoid spending more than you can afford to pay off in the near term.
The other benefit of using your card to book travel is getting reward miles or points. By booking one trip on your credit card you could earn be earning miles for your next big trip. With the Discover it Miles card, you will earn 1.5x miles for every dollar spent on purchases. And at the end of your first year, Discover will match all the miles you've earned so you can use them towards your next getaway. Click here to learn more.
2. Gas
With gas prices fluctuating all the time, it can be expensive to drive. But spending money on gas can actually be a good thing - if you use your credit card.
With the Discover Cashback Match program, you'll earn cashback on every dollar you spend on purchases - including everytime you fill up your tank. The amount of cash back you earn is then matched by Discover at the end of the year. Click here to learn more.
So if you're driving every day, there's really no reason not to fuel your car with a Discover it Card, earn cash back as you go - and get that match at the end of the year.
Consumer electronics
Whether you're buying a television, new laptop, or the latest smartphone, using a credit card can save you money on expensive gadgets by deferring interest.
Many cards come with promotional deals that allow new cardholders to pay over time, interest-free. And if not, they offer free balance transfers. In both cases, interest-free periods typically last anywhere from 10 to 15 months, giving you a nice stretch to pay for a larger purchase on your own schedule. Just be sure to pay off the balance before the 0% APR expires. Otherwise, you may actually owe all of the interest deferred.
And if you use your Discover card on these big purchases, there's another benefit: getting cash back. Considering that many of these items are expensive, that could amount to a nice amount of extra money.
4. Groceries
According to data from the Bureau of Labor Statistics' Consumer Expenditure Surveys, the average US household spends anywhere from $286 to $500 per month on groceries, depending on the city. That's a significant part of a monthly budget, but using a credit card could help by accurately tracking the amount of money being spent each month on groceries. When you are spending that much on groceries, you should be getting rewarded with cash back on your Discover it Card.
Using a cash back credit card, like the Discover it Card, is like getting a "discount" on everything. At the end of the day, you're likely saving money on every purchase made with your card. Combined with the convenience of not having to carry cash and added fraud protection, using plastic really has its benefits.
Learn more about Discover's Cashback Match.
This post was created by Insider Studios with Discover.