Are you planning a big purchase and wondering how to manage your finances most efficiently? Credit cards can be a helpful tool for making large purchases. With the right strategy in place, you can make your purchase while enjoying rewards, cash back, or extended interest-free periods. In this article, we'll explore the best credit cards for large purchases and the advantages of using them. So sit back, relax, and let Flik Eco guide you through this essential financial knowledge.
Credit Cards For Large Purchases Table of Contents
Why use a credit card for large purchases?
There are several reasons why using a credit card for large purchases can be advantageous. Here are some key benefits:
1. Earning rewards
Many credit cards offer reward programs that give you points, miles, or cashback for every dollar spent. When you make a large purchase, those rewards can quickly add up.
2. Extended payment plans
Some credit cards offer 0% or low-interest plans on new purchases for a specified period, allowing you to spread your payments over time without incurring too much interest.
3. Purchase protection
Credit cards often come with purchase protection, which covers you if your item is lost, damaged, or stolen. This additional layer of security can be very useful when making large purchases.
Best credit cards for large purchases
Now that you know the benefits, let's dive into the best credit cards for making large purchases.
1. Chase Sapphire Preferred Card
The Chase Sapphire Preferred Card is an excellent choice for large purchases, particularly if you're planning to spend on travel or dining. With this card, you'll earn 2x points per dollar spent on travel and dining purchases and 1x points on all other purchases. The points can be redeemed for travel through Chase Ultimate Rewards or transferred to partner airlines and hotels for more options.
2. Capital One Venture Rewards Credit Card
If you prefer a credit card with a simple rewards structure, the Capital One Venture Rewards card may be an excellent choice. You'll earn 2x miles per dollar spent on all purchases, making it ideal for large purchases that don't fall into specific categories. Plus, you can redeem your miles for any travel expense, giving you plenty of flexibility.
3. Citi Double Cash Card
The Citi Double Cash Card is an excellent option if you're looking for a cashback credit card for large purchases. This card offers a generous 2% cashback rate (1% when you buy and 1% when you pay your bill), with no restrictions or caps on the earnings.
4. Discover it Cash Back Card
The Discover it Cash Back Card is an ideal choice for those who want a card with rotating reward categories. You'll earn 5% cashback on up to $1,500 in purchases in rotating categories each quarter and 1% cashback on all other purchases. The 5% cashback can be beneficial if your large purchase falls within one of the designated categories.
Credit Cards For Large Purchases Example:
Let's say you're planning to buy a new TV that costs $1,000. You decide to use the Chase Sapphire Preferred Card to make the purchase because it's part of your current travel and dining spending.
By using the card, you'll earn 2,000 Chase Ultimate Rewards Points (2x points per dollar spent). You could redeem these points for $25 worth of cashback, or you could transfer them to one of Chase's travel partners for an even higher value. Additionally, if the card currently offers a 0% interest rate, you could spread your payment over several months without accruing interest charges.
So there you have it! Credit cards can be incredibly useful for making large purchases, helping you not only manage the payment but also benefit from rewards, cashback, and purchase protection. When making a large purchase, it's crucial to choose the right credit card based on your spending habits and financial needs. If this article has been helpful, be sure to share it with others and explore more articles on Flik Eco for all your personal finance knowledge needs.
