We are often faced with a dilemma: which credit card is best to pay for a large purchase that falls outside the regular categories?

• household appliances
• computer
• cell phone
• municipal taxes
• tuition fees
• professional services (lawyer, notary, dentist, etc.)
• etc.

Here are some questions to ask yourself to determine the best credit card to pay for your big purchases.

Credit cards generally offer purchase insurance with coverage for theft and breakage. In addition, some credit cards come with an extended warranty that extends the manufacturer’s warranty to 3 years. This is the case, for example, with the National Bank World Elite Mastercard^®.

To benefit from purchase insurance or extended warranty, you must have paid for the goods in full with your credit card. Also, the credit card must remain open, active and in good standing in the event of a claim.

You should therefore consider keeping these credit cards, and not closing them once you’ve earned a bonus.

Do you have points in the bank and want to use them to pay for that big purchase? You will therefore need to use the credit card linked to the rewards points program in question.

For example, by paying for your cell phone with the American Express Cobalt^® Card you’ll be covered in the event of breakage or theft, and you’ll be able to use your American Express Membership Rewards points to reduce the cost!

As a result of your large purchase, you will be able to earn points. Turn to the credit card that earns the type of points you are looking for! To do this, you need to determine your objectives and your points accumulation strategy.

However, you have to ask yourself which aspect you favour when the credit card that gives you the best purchase insurance doesn’t match the card that gives you the type of points you want.

Similarly, the return (discount) may be greater with another credit card, but purchase insurance and extended warranty must be considered in the equation, not just the “best return”.

If your goal is to unlock a bonus on a major purchase, consider signing up for a new credit card! Some cards, like the American Express Platinum Card^® or the Business Platinum Card^® from American Express, require high spending to earn their generous welcome bonuses. These cards ship quickly via FEDEX, allowing you to receive them in time for your non-category purchases and unlock the coveted bonus!

Check out the best credit card offers available today!

At this level, purchase insurance and extended warranties are irrelevant. The first two questions to ask are:

• Are credit cards accepted?
• Are American Express cards accepted?

Cash back and several rewards programs allow the use of rewards points to reduce the bill.

However, the option of using reward points to pay off all or part of a credit card balance is much less advantageous than using them for travel credits. However, money saved is money saved! It’s up to you to decide what’s best for your situation.

However, as mentioned earlier in this article, there’s no difference with programs like American Express Membership Rewards. Indeed, these points can be used as a Statement credit at the rate of 1,000 Privilege Points = $10, whether on travel or on everyday purchases.

Large purchases in this category are not very pleasant to pay for, but it is a great opportunity to earn rewards to fund your next trip.

What better way to earn points than with an Aeroplan credit card after a visit to the dentist!

Same as above for large purchases.

Municipal taxes and school taxes are large recurring purchases. So, we can easily plan our credit card strategy accordingly to take advantage of it.

In this example, there is a transactional fee to use a credit card through PaySimply or Plastiq, but it may be worth it, if the purpose is to unlock a welcome bonus!

There’s no single answer to choosing the right credit card to pay for a big purchase and get the “best return”. Indeed, there are several factors to consider in order to make the “best choice” in your situation.