PITTSBURGH (KDKA) — Easy swipe, easy go makes a lot of people hesitant to use credit cards.
“You do have to pay for what you charge, but on the other hand, there are benefits from charging via credit card,” said Jeffery Inman, Ph.D., of the Katz Graduate School of Business at the University of Pittsburgh.
Dr. Inman says in many cases, if you’re not swiping, you’re leaving money or perks on the table.
Here are the items the experts say should always be charged:
1. Big Ticket Items like Electronics or Appliances
“You get extended warranty protection with a lot of card; and No. 2, you can enjoy perks, rebates and rewards for buying high ticket items,” says Dr. Inman.
“The big benefit from traveling and services in general is in case there’s any kind of a dispute then you have the credit card company to back you up,” says Dr. Inman.
And some cards offer secondary travel insurance that could cover you if the trip is canceled, or provide you with hotel and airline rewards.
3. Provider Services
Things like home contractors, hair dressers and landscapers, any service provider; using a card makes it easier to stop payment if there is a dispute with the service and record keeping.
4. Online Purchases
Dr. Inman says use credit Rather than debit whenever you can “because of the risk protection that you get; and again, the credit card company can stand behind you in case there’s a dispute with the shipping, or receipt of the item, or breakage, or things of that nature.”
5. Your Monthly Membership to the Gym or Health Club
“In case you do decide to cancel, the credit card company will help you do that,” Dr. Inman says.
Also it will help block recurring payments.
6. Your Cell Phone Bill
“It’s a recurring charge and you might as well get some rebates from it versus just taking it out of your bank like a check,” Dr. Inman says.
7. Concert & Event Tickets
“Sometimes if you buy tickets to a concert, for example, you get VIP access or you get rebates from the credit card company for all the dollar value of what you purchased,” said Dr. Inman.
8. Charitable Contributions
For example, donations to the church.
9. Tax Deductions
“Tax deductible items are good to charge via credit card because the monthly statement provides a record of the purchase,” Dr. Inman adds.
Clearly, the benefits can build up and become quite lucrative.
“Pay your bill off, so you earn the points and it’s worth earning the points,” said Cathy Hoover, of Hookstown.
“There’s a self-control issue where it’s easy to roll over the charges every month, and then before you know it, the interest rates payment far outweigh these benefits,” said Dr. Inman.