Items Best Purchased in Cash or via Credit Card

There are no rules when it comes to paying in cash or via credit card. The best payment option for you will still depend on your current financial situation. There are some items that are best purchased using a credit card because you can make staggered payments and earn reward points and additional perks. There are also items that you should pay for in cash for the simple reason that they’re affordable and inexpensive.

Appliances and Electronics

Big purchases like laptop computers, smartphones, and tablets, as well as home appliances and furniture, should be paid using a credit card. Credit card companies usually offer zero-interest installment plans on these products, which you can even pay up to 36 months. It’s more convenient to charge it to your credit card because you can already use the product even while you’re still paying for it, as opposed to raising the money first before making the purchase.

Event Tickets

When there’s a big concert or show happening in town, tickets can sell out in minutes. It will be a big advantage if you have a credit card to quickly make your purchase. You can also pay in cash, but only if you have time to go to the concert venue or ticketing agency and purchase the tickets yourself. That can be a huge hassle, especially if you have no time. Also, that doesn’t guarantee that there will still be tickets left to purchase.

Airline Tickets

Like event tickets, airline tickets are very hot commodities, especially when there are seat sales and ongoing promotions. Aside from having the best internet connection and the fastest fingers, you should have a credit card on standby, with available credit to boot. It’s a lot convenient to purchase airline tickets online with a credit card than to go to the nearest ticketing office. You can also be eligible for contests and promotions every time you use your credit card to buy airline tickets.

Hotel Accommodations

The preferred payment method of most hotels here and abroad is via credit card. No matter where you are located in the world, if you want to book a hotel room in Maldives, you can do so in minutes. You can quickly reserve or book a room and focus your energies on planning your itinerary. If you want to cancel the booking, you can course the request through your credit card company and the hotel and still get a refund with no hassle.

Groceries

Some people prefer to pay for their groceries using their credit cards. Aside from the convenience of not carrying cash, it has enticing offers to earn rebates with BDO credit cards. However, it’s actually recommended to pay for them in cash, especially if you have only a few items to buy. Your monthly household budget should include money for groceries, so try not to overspend. Paying for groceries in cash will help you be more mindful of your budget compared to paying with plastic.

Food

Pay in cash for your morning coffee, your vegetarian lunch salad, and your after-office hour drinks. Pay in cash when you dine out with friends or family. Food is just a small and quick purchase, and you should not spend extra money on interest for something that can be consumed in just minutes.

Fashion Items

Pay for your clothes and shoe shopping in cash, especially if you will be shopping at bazaars, flea markets, warehouse sales, and garage sales. Again, it’s easier to track your spending when you have just the exact amount of money with you in your wallet. Sometimes, you can also get extra discounts when you pay in cash. It also depends on where you plan to purchase. If you can’t resist the latest designs offered in-store, then your best option is to buy using your BDO Forever 21 MasterCard so you can also earn rewards points and get the best offers available.

Entertainment

Whether you’re going on a movie date with your special someone, watching your favorite indie band in your favorite coffee shop, or buying the latest bestseller of your favorite author, pay for it in cash. Remember that small purchases don’t need to go on your credit card bill. (by Rouselle Isla)

About the author: Rouselle Isla is a regular contributor for iMoney Philippines. She is an avid reader and book reviewer, with interests in writing about finance related articles and general money saving advice.