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If you’re looking to furnish your home, take the family on holiday or buy new wheels, you’re probably also thinking about how to finance it – especially if you don’t have cash or savings to put towards your purchase. While options such as in-store financing and personal lines-of-credit may be available, using a credit card to make your purchase could also be tempting.
For instance, you might want to take advantage of a 0% purchase credit card offer to help save on interest charges, or use a rewards credit card to earn points that lead to future rewards. But, if unchecked, you could end up paying a lot of money in rates and fees. Here, we look at the pros and cons of using a credit card for making large purchases so that you can decide if plastic is the right way to go.
The potential benefits and features of using a credit card for life’s large items include:
Learn more about in-store credit card finance options
These are some of the potential issues you might face when using a credit card for large purchases:
Having read and understood the pros and cons listed above, it’s important to carefully consider how and when you’ll be using your credit card for large purchases, as well as how soon you can repay the full amount. If you do decide to pay with plastic, here are some tips to help ensure that it stays affordable and convenient:
While credit cards can be a convenient and beneficial mode of payment, it’s important to weigh up the pros and cons of using them on your larger purchases since these may naturally take longer to repay. If you decide to go with one, make sure you research all available offers before deciding on the best card deal for your needs.
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if I have a limit of say, $2000 can I pay say $2000 in advance into my credit card so that a one of payment for my holiday $3800 would be ok?
Hi Maz,
Thank you for your inquiry.
As long as you don’t exceed your limit, you should be good. However, if you wish to learn more, you can always ask your card issuer. Our company finder.com.au is a financial comparison website and general information service designed to help consumers to make a better decision. Please note we do not represent any company we feature on our pages.
It would be best to ask your credit card provider directly if they will allow this on your account. Before you do that, you may want to consider reading a guide about making large purchases with credit cards.
I hope this information has helped.
Cheers,
Harold