What can you pay for and purchase using a credit card?

Credit cards may be a very useful financial instrument for unexpected spending, dealing with crises, earning reward points, and just improving a credit score. In our efforts to transition to a paperless economy, plastic money such as credit cards have become an important instrument for transactions ranging from little purchases to large purchases. It goes without saying that only by exercising financial discipline can one realise the full benefits of credit cards.

This blog delves at what may be purchased with a credit card, the method for doing so, suggestions for first-time credit card users, and some pitfalls to avoid.

Things you may pay for and purchase with a credit card.

A credit card can be used to pay for or purchase a variety of products and services. However, there are some payments that cannot be made with plastic money. This section will go through the transactions that may and cannot be purchased with credit cards.

What can you buy with a credit card?

Using a credit card to pay for anything.

Although it may seem appealing to pay off a higher interest credit card payment with a lower interest credit card, this is not permitted by financial institutions or credit card companies. To settle the required amount, they normally take money orders, electronic money transfers, or bank checks.

While direct payments from a credit card to settle the balance on another credit card are not possible, a balance transfer to use a credit card for credit card payments is an option. This simply implies that one can transfer a portion or the entire balance of one’s credit card debt to another card. Needless to mention, there is a charge associated with the procedure.

Having to pay taxes.

It is possible to pay taxes using a credit card. One can pay the amount owed and receive an acknowledgement relatively instantly. In order to encourage non-cash transactions, the government has provided rewards to persons who use their cards.

Payment of rent.

Rent accounts for a significant portion of our monthly expenses. Rent may be paid using a credit card, but there are certain things to consider before doing so. You will receive some reward points for using your credit card to make a payment, but there are certain fees that will be assessed, and if you miss a payment, your credit score will suffer.

What can you purchase with a credit card?

Purchasing Electronics

When you buy a big-ticket electronic item, credit cards not only help you earn reward points, but they also give protection, generally in the form of an extended warranty.

Expenses for travel

Credit card companies frequently provide their users with numerous perks like as cancellation insurance, baggage insurance, and medical coverage, among others. When you book your travel adventures using a credit card, you may earn reward points and enhance the benefits you get from your credit card.

Online shopping

Credit cards give protection against fraudulent online purchases, which comes in useful if your card information falls into the wrong hands.

How to Pay with a Credit Card Online

We can all agree that the introduction of credit cards simplified the procedure of making internet purchases. The following steps must be taken in order to effectively finish a transaction when paying with a credit card.

When you are on the checkout page of the aforementioned website, the following information must be provided:

Shipping information

Providing the mailing address allows the website to calculate the final delivery cost and update the total transaction price. This address must be different from the billing address and must be where you want the order sent. Typically, various shipping options will be presented here.

Selecting a Payment Method

Select a credit card as your payment method. After that, you will have the choice of choosing your credit card, such as Visa, Mastercard, and so on.

Enter the following credit card information:

Enter your information in accordance with your payment card. Information such as the card’s name, credit card number, expiration date, and security code will be requested.

The billing address.

This is the address where you will get any credit card statements, and it may differ from the shipping address you supplied previously.


Once you’ve entered all the necessary information, click the button to continue. You will be sent to a verification screen to double-check the information you provided. You can successfully finalise the order after ensuring that the information is correct

Using a credit card to make an online purchase

Credit cards have become one of the most common methods of payment for online transactions for a variety of reasons, including:

Option for EMI

You might purchase expensive products without having to pay a large sum all at once. Credit cards provide us the option of turning our payments into EMIs that may be repaid over time.

Building credit and earning rewards

Credit cards come with the added benefit of earning reward points every time the card is used. These reward points can be used for free airline tickets or purchases from stores affiliated with the credit card. Furthermore, when you pay your credit card bills on time, you build a positive credit history, which improves your overall credit score.

Fraud avoidance

Credit cards offer a higher level of protection against online fraud, making them one of the most secure methods of online purchase. To complete the transaction, both the credit card PIN and the OTP on the registered cellphone number are required, providing consumers with a twofold degree of protection.

Items to avoid purchasing with a credit card

Even though using a credit card offers numerous advantages, it is critical to remember that a credit card should not be utilised for frivolous. Here are some examples of credit card charges that should never be made.

  • Student loan
  • Any product or service requires a down payment.
  • Paying for common products without a budget in place
  • Attempting to purchase things just to get credit card points whenever feasible.
  • Medical expenses.

Tips for New Credit Card Users

Because your first credit card serves as the foundation for your future credit score, it is critical that you understand the following steps to get the most out of your credit card:


Credit cards should not be used to buy that you might not afford Use your credit card only for purchases that you can pay off within a month. Keep track of all purchases made with your credit card.

Payments should be automated – automatically debited from back account.

To minimize late payments, set up automated payments for your credit card bills well in advance of the due date. One can improve their credit score by automating credit card payments online.

Examine your credit utilisation ratio.

Don’t go above your credit card limit. Ideally, try not to exceed 30% of the overall credit limit allowed at your end. Using more than 30% of your credit limit might have a negative impact on your credit score.

Check your card statement on a frequent basis.

Regularly review your credit card statement to ensure that there are no discrepancies. Check for problems and unjust charges, and then resolve them with the card issuer as soon as possible.

Additional Tips for new Credit Card Users.


Credit cards, when utilised correctly, may be a very useful financial instrument. It is critical to recognize that one does not overspend as a result of the easy access to credit that these cards allow. We may use the adaptability of credit cards by living within our means.

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