What can you pay and buy with a credit card? - MoneyTap
what can you buy with a credit card
What can you pay and buy with a credit card?
Shiv Nanda
Aug 23 • 5 mins read

What can you pay and buy with a credit card?

5 mins read

Credit cards can prove to be an extremely valuable financial tool for unplanned expenses, handling emergencies, earning reward points and just building a credit score. In our attempt to move towards a cashless economy, plastic money such as credit cards become an important tool for transactions of all kinds ranging from everyday purchases to big ticket items. It goes without saying that one can only reap the full benefits of credit cards if they exercise financial responsibility in the process.

In this blog we deep dive into things one can purchase using a credit card, the process for the same, tips for first-time credit card users and some avoidables to keep in mind.

Things you can pay and buy with a credit card

Multiple goods and services can be paid for or bought using a credit card. However, there are several kinds of payments that can not be made using plastic money. In this section, we will deep dive into the transactions that can be and cannot be bought using credit cards.

What can you pay for using a credit card?

  1. Paying credit card with a credit card
  2. It can be a tempting thought to pay off a higher interest credit card payment with a lower interest credit card, this however, is not permissible by financial institutions and credit card companies. They usually accept money orders, electronic money transfers or bank cheques to settle the due amount.

    And while direct payments from a credit card to settle the balance on another credit card is not possible, there is an option to do a balance transfer to use a credit card for credit card payments. This essentially means that one can transfer part or full amount of credit card debt on another card. Needless to say, there is a fee attached to the process.

  3. Paying taxes
  4. The option to pay taxes using a credit card is available. One can pay the amount due and get the acknowledgment for the same, almost immediately. The Government, in their attempt to encourage non-cash transactions, has given benefits to individuals making use of their cards.

  5. Paying rent
  6. Rent makes up a major chunk of our monthly expenditure. One can pay their rent using a credit card but needs to be wary of some factors before taking the decision. You will earn some reward points for making a payment using your credit card but there are certain charges that will be levied also incase of a missed payment, your credit score will take a hit.

What can you buy using a credit card?

  1. Buying electronics
  2. Credit cards not only help secure reward points when you buy a big-ticket electronic item but also provide insurance, usually in the form of extended warranty.

  3. Travel expenses
  4. Credit card issuers often offer their customers various benefits such as cancellation coverage, luggage insurance, medical coverage among others. Booking your travel experiences using a credit card allows cardholders to also earn reward points and multiply the benefits they secure out of their credit card.

  5. Online purchases
  6. Credit cards provide insurance against fraudulent transactions that might take place online, which is extremely handy in situations where your card details fall in the wrong hands.

Steps to pay online with a credit card

We can all agree that the process of online purchasing has been made significantly easier with the advent of credit cards. The payment process with a credit card involves the following steps that need to be followed in order to successfully complete a transaction.

When you are on the checkout page of the said website, the below-mentioned pieces of information need to be provided:

  1. Shipping address
  2. Providing the shipping address helps the website to analyze the final shipping cost and thereafter update the total purchase amount. This address needs to be the one where you want the order to be shipped, and it might be different from the billing address. Usually the option for various shipping types will be presented here.

  3. Choosing payment method
  4. Choose a credit card as your mode of payment. Next, you will be given the option to choose which credit card you are using – Visa, Mastercard and so on.

  5. Enter your credit card information:
  6. Enter your details in congruence with your credit card. Details such as name on the card, credit card number, expiration date and security code will be required.

  7. Billing address
  8. This is the address where you receive all your credit card statements and might differ from the shipping address provided earlier.

  9. Verify
  10. Once all the required information is provided, you can select the button to proceed. You will be taken to a verification window where you can re-check the information entered. After confirming that the information is accurate, you can successfully complete the order.

Buying things online with a credit card

Credit cards have become one of the most popular mode of payment for online purchases, and there are various reasons that contribute to it:

  1. EMI option
  2. You can buy big ticket items without having to shell out a big amount all at once. Credit cards allow us the option of converting our payments into EMIs which can be paid back over a span of time.

  3. Rewards and credit building
  4. Credit cards come with the additional bonus of reward points every time the card is used. One can redeem these reward points for free travel tickets or purchases from stores the credit card has a tie up with. Also, when you repay the credit card dues on time, it helps create a positive credit history hence improving your overall credit score.

  5. Fraud prevention
  6. Credit cards provide a greater level of insurance against online fraud making it one of the most secure ways for online shopping. Both the credit card PIN and OTP on the registered mobile number is required to complete the transaction and hence, it ensures a dual level of security to the users.

Things to avoid buying with a credit card

Even though credit card usage comes with a lot of advantages for the user, it is important to understand that a credit card must not be used for unnecessary expenses or purchases you can not afford to make, generally. Here are some of the items that must never be put on a credit card:

  • Education loan
  • Down payment for any product or service
  • Paying for everyday items without a budget planned for the same
  • Trying to buy products just to gain credit card rewards wherever possible
  • Medical bills.

Tips for first time credit card users

Your first credit card is the foundation of your future credit score, which makes it important to understand some steps that will help you yield the maximum returns out of your credit card:

  1. Budget
  2. Credit card is not an instrument you use to buy things you can’t afford. Only use your credit card to buy things you can realistically pay off after a month. Keep a track of the purchases you make using your credit card.

  3. Automate payments
  4. Schedule automatic payments for your credit card bill payments well before the due date, in order to avoid late payments. By automating the credit card payment online, one can also increase their credit score.

  5. Check your credit utilization ratio
  6. Do not max out your credit card limit. Ideally, try not to surpass the limit of 30% of the total credit limit available at your end. Using more than 30% of your credit limit can decrease your credit score.

  7. Check card statement regularly
  8. Ensure that there are no discrepancies in your credit card statement by reviewing it at regular intervals. Check for errors and unfair charges and then clarify these with the card issuer at the earliest.


If used right, credit cards can prove to be an extremely beneficial financial tool. It is important to acknowledge that one does not overspend due to easy access to the credit, these cards provide. By living within our means we can maximize on the versatility credit cards offer.

Add a comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Experience MoneyTap Power

Apply now

Find our social channels

© 2021 MWYN Tech Private Limited. All rights reserved