Choosing the best way to pay for something — credit or cash — can make a real dollar difference for you. So knowing when to do which is key.
Personal finance experts say it’s especially smart to avoid using cash for these five types of purchases:
Paying with a credit card can help keep your digital purchases protected — and your loved ones happy.
This includes e-books, games on Facebook, FB, +0.56% ring tones — anything delivered digitally. If you pay with cash, or more likely with a debit card, the money is gone from your account immediately. Credit cards offer protections if you didn’t get what you paid for.
Electronics and other products with warranties
Next time you buy electronics, check your credit card benefits for a potential warranty boost.
For items that come with a warranty, using a credit card can often extend that warranty by up to a year.
Products or services that haven’t been received
Using a credit card can help cover you in case a move doesn’t go as planned.
If the flowers aren’t delivered, the furniture is damaged or the movers didn’t do everything the contract said, you’re not immediately out of the money if you used a credit card.