Credit cards often get a bad reputation for encouraging debt, but when used wisely, they can be powerful financial tools. The key is knowing what to charge—and what not to. By putting the right purchases on your credit card, you can earn rewards, improve your credit score, and enjoy valuable consumer protections.
Here are seven things you should definitely put on a credit card (and the reasons why doing so is a smart financial move).
1. Recurring Bills & Subscriptions
Why? Automation, rewards, and fraud protection.
Paying for subscriptions (like Netflix, Spotify, or gym memberships) with a credit card ensures you never miss a payment due to an empty bank account. Plus, you’ll earn cash back or points on expenses you’re already committed to.
Another advantage? If a service overcharges you or fails to cancel properly, disputing the charge is much easier with a credit card than with a debit card or direct bank withdrawal.
Pro Tip: Set up autopay for the full statement balance to avoid interest charges.
2. Travel Expenses (Flights, Hotels, Rental Cars)
Why? Travel protections, rewards, and insurance perks.
Most credit cards—especially travel rewards cards—offer built-in benefits like:
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Trip cancellation/interruption insurance
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Lost luggage reimbursement
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Rental car insurance
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No foreign transaction fees
Booking flights or hotels with a debit card or cash means missing out on these protections. Plus, many travel cards offer 3x–5x points per dollar spent, making your next vacation cheaper.
Pro Tip: Use a card like the Chase Sapphire Preferred® or Capital One Venture for maximum travel perks.
3. Online Purchases
Why? Enhanced security and easy dispute resolution.
Online shopping comes with risks—fraudulent sellers, undelivered packages, or identity theft. Credit cards provide:
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Zero fraud liability (you won’t pay for unauthorized charges)
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Chargeback rights (if a seller scams you)
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Virtual card numbers (for extra security)
Debit cards, on the other hand, pull directly from your bank account, making fraud recovery slower and more stressful.
Pro Tip: Use a card with purchase protection, which can refund damaged or stolen items within 90–120 days.
4. Big-Ticket Purchases (Electronics, Furniture, Appliances)
Why? Extended warranties and price protection.
Many credit cards extend manufacturer warranties by an extra year on electronics and appliances. Some even offer price protection, refunding the difference if an item goes on sale shortly after you buy it.
Additionally, financing large purchases with a 0% APR credit card (if you can pay it off before the promo period ends) is smarter than taking out a high-interest loan.
Pro Tip: The Citi Double Cash® and American Express cards often include warranty extensions.
5. Gas & Groceries
Why? High reward rates on everyday spending.
Many credit cards offer bonus cash back (up to 3%–6%) on gas and groceries—two unavoidable expenses. Over time, these rewards add up significantly.
For example:
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Blue Cash Preferred® Card from Amex: 6% back at U.S. supermarkets (up to $6,000/year).
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Costco Anywhere Visa®: 4% back on eligible gas.
Pro Tip: Avoid using debit at gas pumps, where skimming fraud is common.
6. Medical Expenses
Why? Flexible payment options and rewards.
If you have a large medical bill, putting it on a 0% APR credit card gives you time to pay it off interest-free. Some healthcare providers also offer discounts for upfront payments—so you could save money by charging the bill and paying it off immediately.
Additionally, medical expenses are often unexpected, and using a credit card (instead of draining savings) can help manage cash flow.
Pro Tip: If you can’t pay in full, look for a card with a long 0% intro APR period (e.g., 15–18 months).
7. Dining Out & Entertainment
Why? Extra rewards and easy expense tracking.
Many credit cards offer 3%–4% cash back on dining, making restaurant spending more rewarding. Plus, using a credit card helps track food expenses for budgeting—unlike cash, which disappears without a paper trail.
Some premium cards (like the American Express Gold Card) also offer dining credits or discounts at certain restaurants.
Pro Tip: Avoid using a debit card at restaurants, where staff handle your card out of sight (increasing fraud risk).
What NOT to Put on a Credit Card
While credit cards are great for the purchases above, avoid using them for:
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Cash advances (high fees + immediate interest)
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Rent/mortgage payments (often incurs extra fees)
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College tuition (unless you can pay it off immediately)
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Anything you can’t afford to pay off in full (to avoid debt spirals)
Final Thoughts: Use Credit Cards Strategically
Credit cards aren’t inherently bad—misusing them is. By charging the right expenses, you can:
✅ Earn rewards (cash back, travel points)
✅ Build credit (through responsible use)
✅ Gain protections (fraud coverage, warranties)
✅ Manage cash flow (without paying interest)
The golden rule? Always pay your balance in full each month to avoid interest and debt.
