People apply for credit cards for various reasons -- whether it’s to transition to a cashless economy, a springboard to larger credit opportunities, or to pay for daily needs. There are so many conveniences that you can associate to credit card ownership, but what stands out the most is the ability to buy things now and pay later. 

While shoppers are well-used to this mechanic to pay for anything under the sun, from fast food to luxury products, there’s a less-explored spending category that you might want to pay for with a credit card: big-ticket items. 

READ: When Is The Right Time To Use Your Credit Cards?

Using your credit card for major purchases

If you have a good relationship with your credit card then you can start introducing major purchases into your bill. That could be the monthly house mortgage, your rent, car payments, or other expensive purchases. These are generally paid through a loan, bank transfer, check, or cash as relying on the pay-later mechanic of credit cards can be dangerous. Citi PayAll allows you to safely set up recurring bills payment like rent, association dues, and more for up to Php200,000. Transaction fees are waived for new enrollments until September 30, 2020. 


Most credit card issuers are partnered with merchants where you can make huge purchases. Installment offers come with 0% interest payable from 3 to 12 months. You can shop for gadgets, furniture, and appliances online and proceed to checkout using your credit card. Some cards may permit you to purchase but installment options will be subject for approval. Check the terms and conditions for every promo before buying. 

Assessing your financial capacity 

Before deciding to wire large payments through your credit card, take a good look at your current financial standing. How much do you earn each month? Can you make the full repayment every time your credit bill comes in? If you would have to rely on paying only the partial cost, then is the interest rate better than a loan? Can you keep up with doing this until you have fully paid for your obligations? 

READ: 6 Signs You're Ready To Apply For A Credit Card

The dangers of literally swiping your way to luxury 

couple shocked at bill


Credit cards are powerful financial tools, so much so that you can bury yourself into piles of debt for not being careful. It’s easy to swipe for purchases but difficult to swallow the impending bill 30 days later. Overspending in regular shopping sprees due to a high credit limit and no self-control is already an issue, so if you find yourself unable to manage your credit, then it might be a better idea to take a step back instead of opening your credit card up to even bigger purchases. 

Choose to purchase necessities with your credit cards. Before buying, make sure that the big-ticket item is necessary. You can’t afford to set aside a huge amount of money for things you don’t actually need unless you are financially sound even after months of enduring the pandemic. 

READ: How to Avoid the Stress of Bill Shocks

Don’t forget about regular expenses

Big-ticket items are not the same as recurring and monthly expenses. Before using your credit cards for a huge purchase, make sure you still leave enough credit to pay for regular purchases. Credit cards are very useful for online shopping and once you used up your limit, you can’t pay for your regular expenses anymore. 

If you have more than one card, assign the big-ticket purchase into the credit card with a higher credit limit and which you are not using for essentials. The best way is to use a rewards credit card that will let you earn more points, rebates, and cashback. You can also purchase with a credit card that has a spending condition for an annual fee waiver. 

Review all your active credit cards and make that wise decision to swipe the appropriate card for your huge purchase. Once you’ve selected the card for big purchases, don’t let it sit for too long. You can use it for small transactions once in a while so that the issuer won't tag it as inactive. 

link to credit card

Alternative solutions for high-end purchases 

While a credit card is one of the most convenient ways to get large payments over with, the interest rate is usually higher than a loan. As a result, it’s usually only a great way to rack up points if you can make the full monthly payments. Alternatively, you can take a loan specifically for your needs. You can apply for a loan to pay for tuition, a car, a bike, a house, and any other specific purchases. You can also avail of eShopaLoan from pera247 which allows you to pay for the item including the shopping cost. You need to pay for 20% of the total price as down payment and the rest will be covered by your eShopaLoan. 

asian woman using smartphone


Final thoughts:

Your credit cards are a great help in this time of crisis. Managing and using them wisely gives you that security knowing you have a fallback readily available anytime. Plan your purchases so you won't regret swiping for the wrong item or paying with the wrong card. Explore all possible options so that you will get the best in all your spending ventures. 


Ailene Amaro

Ailene Amaro

Ailene is a history major turned language teacher turned finance writer. Stern and strict as she may seem, she spends her time away from her lesson plan with music and lyrics.