There are many people in the world today who are afraid of being in debt so they pay cash for almost everything instead of using a credit card. This is good for many reasons because you will not rack up a large amount of debt and you will not ruin your credit history and credit score. However there are some items that it is not a good idea to use cash when you purchase them. This article will explain to you what some of these more popular items are. Read on to learn more.
A New Home
When you purchase a house more than likely you will have to take out a mortgage loan in order to afford it. There are not many of us that can afford to pay cash for every penny the home is going to cost you. Even if you have the cash on hand it might not be a good financial decision to pay cash. Mortgage rates are the lowest they have ever been therefore many financial advisors will recommend getting a mortgage loan and investing the cash into the stock market instead. Another financial benefit is that the taxes you pay on your mortgage will be tax deductible.
Appliances are known to break after so long. When you purchase the appliance on a credit card you may be offered an extended warranty that you would not be given if you do not use cash for the item. What this means is that even if the manufacturer warranty no longer applies and the appliance breaks you can contact your credit care company and they will issue you a refund for the price of the item. Of course this is not with all credit cards so you should be sure that the credit card you use would offer this program.
Short Return Policies From Stores
There are many stores that are now offering a short return policy such as two week or thirty days. This will not be a good thing if you pay cash and need to return the item after the policy has expired. The good news is that if you pay for the item on your credit card more than likely you will have a ninety-day return protection. This means that if the store will not take the item back after their policy expires the credit card company will refund your money. In these cases you will be requires to return the item back to the credit card company and not the store.
There are many stores that have a policy for the clearance items that state final sale and not returnable. For this reason you should use a credit card therefore if you need to return the item the credit card company with the ninety-day return policy can help.
Breakable Items Or Items You Can Ruin
There are many advantages to shopping with a credit card. One of them is the buyer protection plan. This will protect you if you lose or break your item within a certain amount of time the credit card will protect your purchase. This will also work if the item gets stolen.
Airline tickets are another item that you should pay for by using a credit card. This will give you the peace of mind you need with baggage protection, passport or credit card loss protection, and many other protections that will vary with the credit card that you use.
It is important to mention that you should check with your credit card company regarding any of the policies written above. Each credit card will vary and the benefits you may be able to receive will be different with each card. By simply calling the credit card customer service telephone number you will be able to get the answers that you need.
Image credits to : Kristina D.C. Hoeppner