4 Reasons to Always Put Tech Purchases on Your Credit Card

Ashley Eneriz 22-06-2016

Racking up debt is never a good thing, but you shouldn’t ban all credit cards from your life just because you want to avoid debt. In fact, if used wisely, credit cards can be extremely beneficial, especially when it comes to tech purchases How to Be Frugal While Still Enjoying Tech & Gadgets Just because you're being frugal doesn't mean you can't enjoy tech! Here are some tips on how to not break the bank with tech purchases. Read More . Here are a four reasons why you should purchase all of your gadgets with a credit card.


Phone Protection

So many times the manufacturer’s warranty that comes with a new cell phone falls short; either it does not cover everything, or issues start to arise after the warranty expires. Purchasing an extended warranty is always an option, but that can add on up to $99 to the cost of a phone, and cell phone plans are already expensive 10 Ways To Slash Your Cell Phone Bill With the popularity of smartphones reaching an all-time high, the prices of plans are going up and up. Here are 10 top tips to slash your bill. Read More .


Fortunately, some credit cards come with phone protection plans. For example, the Wells Fargo Rewards Visa is a free card that offers up to $1,200 in cell phone protection 5 Smartphone Insurance Plans That Provide the Best Value When a device is as important and as expensive as your smartphone, it probably makes sense to insure it against catastrophes. Read More (after a $25 deductible). You don’t even need to buy your cell phone with this card. Instead, pay your monthly bill with the Wells Fargo Rewards Visa, and you will be covered for up to four cell phones that are listed on your cell phone bill. The maximum benefit limit is $600 per occurrence and $1,200 per 12-month period.

Extended Warranties

When you purchase an appliance or gadget, the salesperson will usually ask you if you want to purchase the extended warranty plan. On one hand, you want to keep your pricey purchase protected, while on the other hand, it is hard to part with $40–80 for a service you might not use. Make your purchase with a good credit card What Are Smart Credit Cards, And How Do They Work? Are you tired of juggling half a dozen credit and debit cards in your wallet? I know I am. Read More , and you will not have to decide.

Many credit cards offer extended warranties on their purchases so you don’t have to spend the extra money on one from the manufacturer or retailer. Each card has its own set of rules and fine print, so be sure to know the loopholes before applying.


American Express cards come with the best extended warranties, giving users up to five years’ protection on some purchases. The American Express Blue Cash Everyday Card matches the length of the original warranty if the original manufacturer’s warranty is less than a year. For original warranties that cover one to five years, Amex provides one additional year of coverage. The coverage does not cover items with physical damage, software, or a few other things.

Price Matching

Ever buy something thinking you were getting a great deal only to be burned a few days later when the price dropped? With the right credit card, you will not have to worry if the price goes lower. Many cards offer a price matching benefit that will refund the difference.

The Discover it® Cashback Match is one of the better cards for tech lovers, as it will refund you up to $500 if you find a lower price on an item within 90 days of your purchase. The card offers 5% cash back on quarterly rotating bonus categories, including 5% cash back on Amazon at the end of the year. If the 5% cash back is eligible on tech purchases through Amazon, then buying an Xbox One S 2TB console can earn you almost $20 in cash back.



Citi cards also come with Citi Price Rewind, which makes it very easy to get the lowest price on an item. Just buy an item with your Citi card and save the receipt. Within 60 days of your purchase, log in to Citi’s Price Rewind database and search for your item. Once your item is selected, Citi will do all of the work tracking lower prices. If you find a lower price outside of the database, there is also an option to send in a refund form. Citi refunds card holders up to $500 per item and up to $2,500 per year.

Promotional 0% APR

It can be hard to wait and save up for the latest and greatest tech gadget that comes out. The smartest way to pay for your pricey purchase without reaping the negative consequences is to use a 0% APR card. A few different cards offer 0% APR for a promotional period when you first sign up. The Citi Simplicity® Card has the longest 0% APR intro period, which allows you 21 months of no interest charges when you first open the account.


Only buy what you can easily pay off within the promotional period. For example, if you want this ASUS gaming laptop, it will cost you $999 plus tax. Be prepared to pay about $60 per month on the Citi Simplicity Card to completely pay off the laptop without getting hit with costly accrued interest.


It is also a good idea to set up reminders in your calendar Reminders Make Google Calendar an Incredible To-Do List Do you maintain a to-do list and a separate calendar? It introduces friction because tasks and scheduling are interdependent. Google now solved this by introducing Reminders to Google Calendar on Android. Read More so that you don’t forget to pay off the debt before the promotional period is over. If you don’t, you could be held accountable for accrued interest charges across the entire period, even if you pay off 90% of your debt before the 21 months is up. Don’t fall into the trap of paying only the minimum payment or waiting until later to chip away at your new debt.

Of course, you’ll want to make sure that you’ve developed some good spending habits How To Start Saving Money And Stop Spending With 4 Easy Habits One of the top new year resolutions on many people's lists is to spend less and save more. It's easier said than done, but you can still rely on several apps and tools to help... Read More before you start putting purchases on a credit card. Make sure to avoid overspending when you buy new tech gadgets, especially since the newest technology can become outdated Planned Obsolescence: Why We Can't Have Nice Things How much money are you wasting due to "planned obsolescence"? In this article, we explain what that is, why it should concern you, and what you might be able to do about it. Read More within only a few years. It’s important to always carefully monitor your credit card use, as they can quickly get you into debt; but when used wisely, they can provide huge benefits with tech purchases.

Have you ever used one of these credit card benefits? Or do you have recommendations for other good benefits that others could take advantage of? Share your best tips in the comments below!

Image Credits: BLACKDAY via Shutterstock, via Shutterstock, Jasty via Shutterstocktuthelens via Shutterstock


Related topics: Buying Tips, Credit Card, Gadgets.

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  1. Paul
    June 23, 2016 at 11:41 am

    Piggybacking off the last tip, taking advantages of promo periods is how I've financed our recent computers. Almost every major carrier has a deal like 0% interest for 6-18 months with a minimum purchase. BestBuy and NewEgg both do. That makes getting a new laptop or desktop much easier on the wallet. Of course you need to be sure to pay it off in its entirety, as the article warns--if you don't, you are liable to a lot of interest payments. Again, the article mentioned a great tip--don't just pay off the minimum. That is usually 2%, and paying off 2% every month won't pay it off on time. I usually set these things up for automatic payments, and I divide the debt by the number of months, and then round up a bit for safety's sake.

    • Ashley Eneriz
      June 23, 2016 at 10:50 pm

      Great comments, Paul. Yes, you definitely want to pay it off on time. One time I mixed up my numbers for my last refrigerator payment on a 0% APR card. All my hard word to pay off the debt in 6 months quickly unraveled as I was hit with over $150 of accrued interest. Thankfully the company was understanding and saw that it was a mistake and canceled the interest charge, but accrued interest is costly!