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The scuttlebutt is to avoid using your credit card at all costs. Using a credit card to make purchases just racks up the balance and interest you have to pay off later. While there are many occasions when using a credit card is a bad idea (like when you are unable to pay off your balance in full by its due date), there are five situations where using credit is better than using cash or a debit card:

Big-Ticket Items

When you are purchasing expensive items, such as appliances and TVs, it is a good idea to make these purchases with a credit card. This gives you time to use the product to ensure it works before you make a payment on it. If you cannot return or exchange the item or it does not function properly, you can contact your credit cardpany to dispute the charge until the matter is worked out between you and the store.

Shopping Online

Shopping online, especially on an unsecure network, can put your credit card and personal information at risk. If your information gets into the wrong hands, fraudulent purchases might appear on your credit card statement, sending your balance sky high. To ensure that you do not have to pay for fraudulent purchases, use your credit card when making online purchases.

Recurring Payments

You should also use your credit card to set up recurring payments. From your utility bill and water payments to auto loans and student loans, you can give thepany your credit card to charge on a monthly basis. This guarantees that your payments are always made on or before the due date, and you won’t end up finding out you forgot to pay your energy bill when you’re sitting at home in the dark.

When Traveling

Check with your credit cardpany before buying airline tickets or making other travel arrangements. Many credit cardpanies offer travel insurance as a benefit of being a cardholder. So if your flight is canceled or your suitcase is lost, you may be able to receive reimbursement through your card issuer. If you plan to use your card internationally, however, keep in mind that many card issuers impose foreign transaction fees for purchases, which can add up fast.

Reward Programs

If your credit card offers a rewards program, this is a great way to rack up points and cash them in for items you want and need. This is especially true when you’re purchasing items you have to buy anyway. Just make sure you pay the balance off on a monthly basis. Its like a buy one, get one free offer you buy what you need, then can use your points to buy more stuff that you need without spending extra money.

While most headlines and financial advisors are telling consumers to avoid credit cards, there are occasions when credit cards suit the situation better than cash or a debit card. Think before you buy, and pull out your credit card in these five situations to benefit you in the long-term.

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Tags: Card, Credit Card