When consumers plan to make large purchases, it is important to choose the right credit card to get the best value. In 2025, some credit cards are particularly good due to their rewards programs and benefits designed for big spending. Travel perks are available with the Chase Sapphire Preferred® Card and the American Express Platinum Card®. For cash back, the Wells Fargo Active Cash® Card and the Chase Ink Business Cash® Card offer great options.
Table (TLDR)
Top 8 Credit Cards in USA for Large Purchases [2025]
| S. No. | Names of Credit Cards in USA for Large Purchases | Best Known & Value for |
|---|---|---|
| 1. | Chase Sapphire Preferred® Card | Best Credit Card Known For Travel Rewards |
| 2. | American Express Platinum Card® | Best Credit Card Known For Travel Rewards |
| 3. | Capital One Venture Rewards Credit Card | Best Credit Card Known For Travel Rewards |
| 4. | Bank of America® Premium Rewards® Credit Card | Best Credit Card Known For International Transactions |
| 5. | Chase Ink Business Cash® Credit Card | Best Credit Card Known For Cashback Rewards |
| 6. | Wells Fargo Active Cash® Card | Best Credit Card Known For Cashback Rewards |
| 7. | Capital One Spark Cash Plus | Best Credit Card Known For Business Rewards |
| 8. | American Express® Gold Card | Best Credit Card Known For Travel Rewards |
Best Credit Cards in USA for Large Purchases [March 2025]
1. Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card is a great choice for large purchases as it allows users to earn a variety of rewards across different categories. These rewards include travel perks, bonus points, dining incentives, and much more, which makes it a versatile option for rewards enthusiasts.
Travel Card
- Issuer – Chase Bank
- Payment Gateway – Visa
- Credit Score – Good-Excellent
- Intro APR – N/A
- Regular APR – 21.24%–28.24%
- Annual Fee – $95
- International Transaction Fee – No International Transaction Fee
- Cash Advance Fee – 5% or $10
- Balance Transfer APR – N/A
- Sign-up Bonus – 60,000 points after $4,000 spent in 3 months
- Best For – Frequent Travellers, Food Enthusiasts
The Chase Sapphire Preferred® Card is an excellent choice for travel enthusiasts and is issued by Chase. This card offers numerous travel rewards, dining reward points, and flexible redemption options, which help users to maximize their travel benefits while efficiently managing expenses.
The card comes with an annual fee of $95 and provides 2X points on travel and dining purchases. Credit limits vary, and applicants must have a good credit score to qualify. In many cases, it can also be a suitable option for beginners looking to obtain a credit card. Additionally, this card includes a referral program and travel insurance.
| Key Features | Reward Rate | Other Information |
|---|---|---|
| Travel Rewards | 5x points on travel via Chase Ultimate Rewards | “Chase Pay Over Time” allows eligible Chase customers to split credit card purchases into manageable payments. |
| Dining Benefits | 2x points on travel purchases | Add your card to a digital wallet such as Apple Pay®, Google Pay™, or Samsung Pay for instant access. |
| Transferable points to airlines | 3x points on dining | – |
| Offers 60,000 Bonus Points | 3x points on streaming | – |
| $150 in additional partnership benefit value | 3x points on online grocery | – |
| Travel $ Purchase Coverage | 1x point per dollar spent on all other purchases | – |
Pros & Cons:
Pros
- Do not charge any international transaction fees.
- Earn dining and travel points on purchases.
- Includes primary rental car coverage.
- Flexible rewards redemption options.
Cons
- The bonus rates are lower compared to other cards.
- No introductory APR on balance transfers.
- It has complicated rewards.
- Requires good to excellent credit.
Expert Advice
The Chase Sapphire Preferred® Card is an excellent credit card for big purchases that offers a wide array of rewards such as travel perks, dining bonuses, and discounts for online grocery shopping and streaming services. With no international transaction fees, it’s perfect for travelers. The card features an attractive welcome offer of 60,000 Bonus Points, along with $150 in additional partnership benefits. It includes essential protections such as Travel Purchase Coverage, which makes it both rewarding and secure for your spending needs.
2. American Express Platinum Card®
The American Express Platinum Card® is a premium card with several features and a generous welcome bonus. This card can be a good option for individuals while making large purchases as it offers many reward benefits, broad airport lounge access, elite status bonuses, and much more.
Travel Reward
- Issuer – American Express
- Payment Gateway – AMEX
- Credit Score – Excellent
- Intro APR – N/A
- Regular APR – 21.24%–29.24%
- Annual Fee – $695
- International Transaction Fee – No International Transaction Fee
- Cash Advance Fee – 5% or $10
- Balance Transfer APR – N/A
- Sign-up Bonus – 80,000 Membership Rewards points after $8,000 spent in 6 months
- Best For – Professionals, Frequent Travelers
The Platinum Card® from Amex, provided by American Express, delivers exceptional travel perks, such as access to airport lounges and hotel upgrades. Its standout feature is the absence of a pre-set spending limit, which allows for greater flexibility and access to exclusive experiences.
The Platinum Card® from Amex comes with an annual fee of $695, plus applicable taxes. Distinctive features include entry to the American Express Global Lounge Collection and a renewal advantage. A credit score of 750 or higher is required to qualify. The referral program allows for the accumulation of extra Membership Rewards points.
| Key Features | Reward Rate | Other Information |
|---|---|---|
| Travel Rewards | 5x points on flights booked via Amex Travel | Pay Over Time lets you carry a balance with interest up to your limit. |
| Lifestyle & Shopping Rewards | 5x points on prepaid hotels booked via Amex Travel | Plan It® allows you to split large purchases into equal monthly installments with a fixed fee. |
| Global Lounge Access | 1x points on other purchases | – |
| $155 Walmart+ Credit | – | – |
| Hilton Honors Gold & Marriott Bonvoy Gold Elite Status | – | – |
| $200 Uber Cash | – | – |
| $200 Airline Fee Credit | – | – |
| Membership Rewards® Program – Transfer Points | – | – |
| Trip Delay Insurance | – | – |
| Premium Car Rental Status with Hertz, Avis, and National | – | – |
Pros & Cons:
Pros
- Provides rewards on bonus categories
- Offers reward points on prepaid hotels
- Membership reward points on prepaid hotels
- Membership reward points on flight purchases.
Cons
- Complicated rewards
- Requires good/excellent credit
- Lounge access is limited to domestic lounges.
Expert Advice
The American Express Platinum Card® serves as a great option for individuals who frequently engage in high spending. However, the card’s high-end features are particularly advantageous for professionals and frequent travelers. This card may help individuals to enjoy various reward benefits such as travel rewards for booking hotels and flights, global lounge access, lifestyle and shopping rewards, and many more. It also offers an annual travel credit of approximately $200 every year.
3. Capital One Venture Rewards Credit Card
The Capital One Venture Reward card provides the opportunity for travelers to earn unlimited 2X miles on all large purchases and utilize high rewards rates associated with travel-specific purchases. Qualified purchases include vacation rentals, flights on any airline, hotel accommodations, car rentals, and cruises.
Travel Rewards
- Issuer – Capital One
- Payment Gateway – MasterCard
- Credit Score – Excellent
- Intro APR – N/A
- Regular APR – 19.99% – 29.24% variable APR
- Annual Fee – $95
- International Transaction Fee – No Foreign Transaction Fees
- Cash Advance Fee – $10 or 3%
- Balance Transfer APR – 19.99% – 29.24%
- Sign-up Bonus – 75,000 bonus miles after spending $4,000 in the first 3 months
- Best For – Travelers
The Capital One Venture Rewards Credit Card is a premium travel rewards card offering unlimited 2x miles on every purchase. Issued by Capital One, it allows flexible redemption options, including flights, hotels, and statement credits for travel purchases. The card also comes with Global Entry or TSA PreCheck® credit, making it ideal for frequent travelers who want a straightforward way to earn and redeem miles.
The card has a $95 annual fee but provides significant value through travel perks. A good-to-excellent credit score (700+) is required for approval. There’s no preset spending limit, making it a flexible option for large purchases. The referral program allows users to earn bonus miles for referring friends. Additional benefits include travel accident insurance, rental car collision coverage, and access to Capital One Travel for price monitoring and booking assistance.
| Key Features | Reward Rate | Other Information |
|---|---|---|
| Rental Car Insurance Coverage | Unlimited 2X miles per dollar on every purchase, every day | Offers special benefits such as price drop protection with Capital One Travel |
| Flexible Redemption Options | 5X miles on hotels and rental cars booked through Capital One Travel | Earn up to a $120 credit for Global Entry or TSA PreCheck |
| Sizable Sign-Up Bonus | – | – |
| High Ongoing Rewards Rate | – | – |
Pros & Cons:
Pros
- Unlimited flat-rate travel miles on all purchases
- No foreign transaction fees
- Flexible redemption options.
Cons
- Miles are usually valued at 1% or less, except in specific airline transfers.
- Other cards offer better rewards with more diverse bonus categories.
Expert Advice
The Capital One Venture Rewards Credit Card is a great choice for travelers who prefer easy flat-rate rewards on big spending while traveling and enjoy several perks that this card provides. It does not charge any international transaction fee and provides unlimited miles to cardholders on everyday purchases and hotels, vacation rentals, and rental cars booked through Capital One Travel.
The Bank of America® Premium Rewards® Credit Card is best used for travel and dining purposes. This card can be a good option for individuals who spend their money on big purchases or on their lifestyles as it offers rewards in several categories such as dining, travel, and many more.
International Transaction
- Issuer – Bank of America
- Payment Gateway – Visa
- Credit Score – Excellent
- Intro APR – N/A
- Regular APR – 21.24% – 29.24% Variable APR
- Annual Fee – $95
- International Transaction Fee – No International Transaction Fee
- Cash Advance Fee – $10 or 5%
- Balance Transfer – 21.24% – 29.24% Variable APR
- Sign In Bonus – 60,000 online bonus points after spending $4,000 in the first 90 days
- Best For – Frequent Travelers, Lifestyle
The Bank of America® Premium Rewards® Credit Card, issued by Bank of America, offers 2 points per dollar on travel and dining and 1.5 points on all other purchases. It’s perfect for frequent travelers seeking flexible rewards and travel benefits.
The card has a $95 annual fee and offers a 60,000-point bonus after $4,000 in purchases within the first 90 days. It also includes travel insurance and no foreign transaction fees.
| Key Features | Reward Rate | Other Information |
|---|---|---|
| Travel Rewards | 2 points for every $1 spent on travel purchases | The $0 Liability Guarantee protects you against fraudulent transactions made by others using your account. |
| Sign-up Bonus | 2 points for every $1 spent on dining purchases | It offers a benefit from the FICO® Score Program, which is available exclusively for primary cardholders who have an active consumer credit card account and a FICO® Score. |
| Purchase Protection | 1.5 points for every $1 spent on all other purchases | – |
| Airport Lounge Facility | – | – |
| Automotive Protection | – | – |
| $200 in Travel Statement Credits | – | – |
| Contactless Chip Technology | – | – |
| Contactless Chip Technology | – | – |
| Airline Incidental Statement Credits | – | – |
Pros & Cons:
Pros
- Offers travel insurance for trip delays, cancellations, baggage issues, lost luggage, and emergency evacuation.
- Provides contactless chip technology
- Do not charge international transaction fees.
Cons
- Charges late payment penalty fee.
- Redemption options for rewards are limited
- No Priority Pass™ airport lounge access
- No airline or hotel point transfer partners.
Expert Advice
The Bank of America® Premium Rewards® Credit Card stands out as a fantastic option for accumulating rewards by providing two points for every dollar spent on large purchases such as dining and travel. It features an attractive sign-up bonus of 75,000 points when you spend $1,000 in the first 90 days, which can amount to $750 for travel bookings through the Bank of America Travel Center. The card also offers essential travel insurance, covering aspects such as trip cancellations and reimbursement for lost luggage which ensures that you have added peace of mind. Overall, this card is a solid choice for maximizing rewards while taking advantage of valuable travel perks.
5. Chase Ink Business Cash® Credit Card
The Chase Ink Business Cash® Card is an excellent choice for those who appreciate various rewards such as miles, cashback, bonus points, and many others on their big spending. It offers several perks to the cardholders’ employee cards at no additional cost, such as travel and purchase protection, extended warranty protection, and many more.
Cashback Rewards
- Issuer – Chase
- Payment Gateway – MasterCard
- Credit Score – Good-Excellent
- Intro APR – 0% for 12 months
- Regular APR – 18.24%–24.24%
- Annual Fee – $0
- International Transaction Fee – 3%
- Cash Advance Fee – 5% or $10
- Balance Transfer APR – 18.24%–24.24%
- Sign-up Bonus – $750 cash back after $6,000 spent in 3 months
- Best For – Small Business Owners
The Chase Ink Business Cash® Card is issued by Chase and offers 5% cash back on office supplies and select utilities, with no annual fee. It benefits small businesses by maximizing rewards on everyday expenses.
The card has no annual fee and offers employee cards at no additional cost. It provides a credit limit based on your business needs and requires a good credit score. The referral program allows you to earn rewards by referring others.
| Key Features | Reward Rate | Other Information |
|---|---|---|
| No Annual Fee | 5% cash back on office supplies & internet/phone services | Chase Ink® gives you 24/7 access to view account details, quarterly reports, up to 24 months of statement details, and more. |
| Earn High Cashback on Business Expenses | 2% cash back at gas stations & dining | Chase Pay Over Time lets eligible Chase business card customers split purchases of $100 or more into equal monthly payments. |
| Credit Line Increases Every Six Months | – | – |
| Get 5% Cashback on Lyft Rides | – | – |
| Employee Cards at No Additional Cost | – | – |
| Travel and Purchase Protection | – | – |
| Extended Warranty Protection | – | – |
Pros & Cons:
Pros
- Earn up to 5% cash back at select stores
- Enjoy 0% intro APR for 12 months
- A business credit card allows you to keep your cash for longer.
Cons
- Offers fewer benefits than others
- Has spending caps on bonus rewards.
Expert Advice
The Chase Ink Business Cash® Card is regarded as an excellent choice for small business owners who appreciate earning rewards on large purchases, along with having no annual fee. It features a 0% introductory APR for 12 months on both purchases and balance transfers. This card provides 5% cashback on the first $25,000 spent at office supply stores, as well as for internet, cable, and phone services. It offers 2% cashback on the first $25,000 spent at gas stations and restaurants. Students also have the opportunity to earn up to 20,000 bonus points by referring others.
6. Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card is a fantastic cash rewards option with no annual fee and offers the potential for substantial rewards on larger purchases for a variety of consumers. The Wells Fargo Active Cash card remains one of the top choices on the market due to its variety of perks such as zero liability protection, auto rental collision damage waiver coverage, and many more. It includes a balanced approach and convenient benefits that exceed those of many rival cards.
Cashback Rewards
- Issuer – Wells Fargo
- Payment Gateway – Visa
- Credit Score – Good-Excellent
- Intro APR – 0% Intro APR for 15 months
- Regular APR – 19.24% to 29.24% Variable APR
- Annual Fee – $0
- International Transaction Fee – 3% of each transaction converted
- Cash Advance Fee – $10 or 5%
- Balance Transfer APR – 19.24% to 29.24%
- Sign-up Bonus – $200 cash rewards bonus after spending $1,000 in the first 3 months
- Best For – Individuals Seeking Cash Back
The Wells Fargo Active Cash® Card is a top-tier cashback credit card offering an unlimited 2% cash reward on every purchase. Issued by Wells Fargo, it provides straightforward rewards with no categories to track, making it an excellent everyday spending card.
It has no annual fee and a generous welcome bonus. Requires a good to excellent credit score. The card offers a 0% intro APR for 15 months, cell phone protection, and Visa Signature benefits, making it a well-rounded option.
| Key Features | Reward Rate | Other Information |
|---|---|---|
| No Penalty APR | 3X points on dining, travel, transit, phone plans, popular streaming services and gas | Pay-per-use 24/7 roadside dispatch assistance |
| My Wells Fargo Deals | – | 3% intro balance transfer fee on transfers within the first 120 days ($5 minimum), then up to 5 percent ($5 minimum). |
| Visa Signature® Perks | – | – |
| Cellular Telephone Protection | – | – |
| Travel and Emergency Assistance Services | – | – |
| My Wells Fargo Deals | – | – |
| Zero Liability Protection | – | – |
| Auto rental collision damage waiver coverage | – | – |
Pros & Cons:
Pros
- Enjoy unlimited 2% cash rewards on purchases.
- The card offers an intro APR on purchases and qualifying balance transfers to help save on interest.
- Using this card to pay your bill will provide cellphone protection.
Cons
- It has a 3% foreign currency conversion fee which can be unsuitable for international travelers.
- Competing cash-back cards offer better perks and credits.
- Wells Fargo’s travel rewards redemption value is less attractive compared to its competitors.
Expert Advice
The Wells Fargo Active Cash Card remains one of the best flat-rate cash rewards credit cards on the market. It is a low-maintenance card and provides excellent rewards and redemption options to the cardholders. The flexibility of the Active Cash Card makes it appropriate for nearly any rewards program. It offers many benefits to cardholders, especially during larger purchases, making it an ideal choice for anyone who enjoys earning rewards.
7. Capital One Spark Cash Plus
The Capital One Spark Cash Plus is a top-tier business credit card designed for companies with high spending. It offers unlimited 2% cash back on every purchase and does not impose any set spending limits which makes it ideal for businesses with high expenses. This charge card requires you to settle the balance in full each month, but it includes important perks such as complimentary employee cards, no foreign transaction fees, and cash-back rewards that never expire.
Business Rewards
- Issuer – Capital One
- Payment Gateway – Visa
- Credit Score – Excellent
- Intro APR – N/A
- Regular APR – N/A
- Annual Fee – $150
- International Transaction Fee – No International Transaction Fee
- Cash Advance Fee – 5% or $5
- Balance Transfer APR – N/A
- Sign-up Bonus – $2,000 after spending $30,000 in the first 3 months
- Best For – Entrepreneurs, Small Business Owners
The Capital One Spark Cash Plus is a business card offering unlimited 2% cash back on all purchases. Issued by Capital One, it’s perfect for businesses looking to maximize rewards.
With a $150 annual fee (refundable with $150,000 annual spend), the card offers 5% cash back on hotels and rental cars booked through Capital One Travel. A strong credit score is required, and it includes free employee and virtual cards.
| Key Features | Reward Rate | Other Information |
|---|---|---|
| No Pre-Set Spending Limit | Unlimited 2% cash back on every purchase | Manage your account online or via the app for alerts, payment options, and past statements |
| Fraud Protection Tools | Unlimited 5% cash back on hotels and rental cars booked through Capital One Travel | Get a free warranty and protection on eligible purchases with your card. |
| Capital One Travel Rewards | – | – |
| Automatic Payments | – | – |
| $0 Fraud Liability | – | – |
| Account Managers | – | – |
| Year-End Summaries | – | – |
| Roadside Assistance | – | – |
Pros & Cons:
Pros
- There is no APR or defined credit limit
- Users can offset the annual fee every year they spend at least $150,000
- High Cashback rates
- Has a generous welcome bonus.
Cons
- The annual fee might be costly for modest spenders
- You must pay your balance in full each billing period
- Excellent credit is recommended to be eligible for this card.
- A penalty fee applies for late payments.
Expert Advice
The Capital One Spark Cash Plus has a unique benefit over other business and charge cards by offering one of the finest flat cashback rates and sign-up bonuses on the market. Its increased purchasing power and sign-up incentive are an improvement over its no-annual-fee rivals and the previous version, the Spark Cash for Business. However, the card’s fee and charge card structure may not be worthwhile for small company owners seeking a low-cost, flat-rate cash-back card or who need to carry a balance on occasion.
8. American Express® Gold Card
The American Express® Gold Card stands out as one of the best travel rewards cards, thanks to its impressive array of dining and travel benefits that cater to high spenders willing to pay the $325 annual fee. It offers substantial rewards on recurring purchases for flights, dining out, and shopping at U.S. supermarkets, along with enough credits to effectively offset its relatively steep annual cost.
Travel Rewards
- Issuer – American Express
- Payment Gateway – AMEX
- Credit Score – Good-Excellent
- Intro APR – N/A
- Regular APR – 20.24% to 28.24%
- Annual Fee – $325
- International Transaction Fee – No Foreign Transaction Fees
- Cash Advance Fee – 5% or $10
- Balance Transfer APR – N/A
- Sign-up Bonus – 75,000 Membership Rewards points after $6,000 spent in 6 months
- Best For – Frequent Travelers, Food Enthusiasts
The American Express® Gold Card, issued by American Express, offers generous rewards on everyday purchases, particularly for dining and travel. Its standout feature is the Membership Rewards program, which allows cardholders to earn valuable points for various expenses.
The card has an annual fee of $325, plus applicable taxes. Unique features include no pre-set spending limit and access to the Gold Collection rewards. To qualify for the card, a credit score of 700 or higher is required. The referral program provides bonus Membership Rewards points for recommending the card to others.
| Key Features | Reward Rate | Other Information |
|---|---|---|
| Travel Rewards | 4x points on dining at restaurants | Pay Over Time allows you to carry a balance with interest, up to your Pay Over Time Limit. |
| No Foreign Transaction Fees | 4x points on grocery shopping at supermarkets on purchases upto $25,000 per year | Plan It enables you to select large purchases to split into equal monthly installments for a fixed fee. |
| Grocery Rewards | 3x points on flights booked directly with airlines | – |
| No Preset Spending Limit | 2x points on prepaid hotels | – |
| Provides Travel and Insurance benefits | 1x points on other eligible purchases | – |
| $120 Uber Cash on Gold | – | – |
| $120 Dining Credit | – | – |
| 3X Membership Rewards® Points | – | – |
| Baggage Insurance Plan | – | – |
| Purchase Protection | – | – |
| Extended Warranty | – | – |
| Dining Rewards | – | – |
Pros & Cons:
Pros
- Ideal for dining and travel, with credits to cover the annual fee
- Has transfer partners
- No fixed credit limit.
Cons
- Require a good – excellent credit score
- Does not offer lounge access
- Complicated rewards.
Expert Advice
The American Express® Gold Card is tailored for travelers who value earning rewards. With this card, you can rack up 4X Membership Rewards® points at restaurants (up to $50,000 spent each year, after which it drops to 1X) and at U.S. supermarkets (capped at $25,000 per year, then it reverts to 1X). Additionally, you can earn points on a variety of other purchases, such as booking tickets through AmexTravel.com or directly from airlines, as well as prepaid hotel reservations and more.
Table of Comparison
Best Credit Cards in USA for Large Purchases
| Name of the Card | Chase Sapphire Preferred® Card | American Express Platinum Card® | Capital One Venture Rewards Credit Card | Bank of America® Premium Rewards® Credit Card | Chase Ink Business Cash® Credit Card | Wells Fargo Active Cash® Card | Capital One Spark Cash Plus | American Express® Gold Card |
|---|---|---|---|---|---|---|---|---|
| Payment Gateway | Visa | AMEX | MasterCard | Visa | MasterCard | Visa | Visa | AMEX |
| Best For | Frequent Travellers, Food Enthusiasts | Professionals, Frequent Travelers | Travelers | Frequent Travelers, Lifestyle | Small Business Owners | Individuals Seeking Cash Back | Entrepreneurs, Small Business Owner | Frequent Travelers, Food Enthusiasts |
| Credit Score | Good-Excellent | Excellent | Excellent | Excellent | Good-Excellent | Good-Excellent | Excellent | Good-Excellent |
| Annual Fee | $95 | $695 | $95 | $95 | $0 | $0 | N/A | $325 |
| Annual Percentage Rate | N/A | N/A | N/A | N/A | 0% for 12 months | 0% for 15 months | N/A | N/A |
| Regular APR | 21.24%–28.24% | 21.24%–29.24% | 19.99% – 29.24% variable APR | 21.24% – 29.24% Variable APR | 18.24%–24.24% | 19.24% to 29.24% Variable APR | N/A | 20.24% to 28.24% |
| Balance Transfer | N/A | N/A | 19.99% – 29.24% | 21.24% – 29.24% | 18.24%–24.24% | 19.24% to 29.24% | N/A | 20.24% to 28.24% |
| Sign in Bonus | 60,000 points after $4,000 spent in 3 months | 80,000 Membership Rewards points after $8,000 spent in 6 months | 75,000 bonus miles after spending $4,000 in the first 3 months | 60,000 online bonus points after spending $4,000 in the first 90 days | $750 cash back after $6,000 spent in 3 months | $200 cash rewards bonus after spending $1,000 in the first 3 months | $2,000 after spending $30,000 in the first 3 months | 75,000 Membership Rewards points after $6,000 spent in 6 months |
| Decision Criteria | High-value travel rewards and flexible point redemption options make it ideal for large travel-related purchases. | Premium travel perks like lounge access and high rewards on large travel expenses justify its higher annual fee. | Simple flat-rate rewards structure and bonus miles make it great for large purchases across multiple categories. | Competitive rewards and travel protections make it suitable for high-value lifestyle and travel purchases. | No annual fee and cash-back rewards make it ideal for business-related large purchases with manageable repayment terms. | Long intro APR period and unlimited cash back make it perfect for financing large purchases with no upfront interest costs. | High spending threshold but significant cash-back reward makes it ideal for businesses with substantial large purchases. | High rewards on dining and groceries make it a strong choice for food enthusiasts making large purchases in these categories. |
Methodology
To determine the most used credit cards for large purchases in the USA, this analysis synthesizes data from credit card issuer reports, consumer surveys, and expert reviews, focusing on cards offering substantial rewards, introductory APRs, and benefits relevant to significant spending. The selection prioritizes cards with high sign-up bonuses, such as the Chase Sapphire Preferred® Card’s 60,000 bonus points or the Capital One Spark Cash Plus’s $2,000 cash back, alongside favorable rewards structures for travel, business, or everyday spending, as evidenced by the American Express Platinum Card® and Chase Ink Business Cash® Card, respectively.
Card usage is evaluated based on the frequency of rewards redemption for large purchases, the value of benefits such as travel insurance (Bank of America® Premium Rewards® Credit Card) and purchase protection, and the attractiveness of financing options, such as the Wells Fargo Active Cash® Card’s 0% introductory APR. The analysis considers user demographics, categorizing cards based on their appeal to frequent travelers, small business owners, or individuals seeking cashback, ensuring a comprehensive overview of the most effective credit cards for maximizing value from substantial expenditures.
Are Credit Cards Used for Large Purchases in USA?
Yes, using credit cards for large purchases is common in the USA. Credit cards can offer benefits such as sign-up bonuses, rewards points, and 0% introductory APR periods which makes them appealing for financing significant expenses. However, it is important to consider the potential effect on your credit score and the risk of accruing interest. Common large purchases people put on credit cards include travel costs, electronics, furniture, and car rentals.
Some credit cards, such as the Ink Business Premier® Credit Card, even offer increased cash back on large purchases:
| When to Use | When Not to Use | What Qualifies as a Large Purchase |
|---|---|---|
| Using a credit card for a large purchase can be beneficial if it helps you meet a spending requirement for a sign-up bonus or earn rewards. A 0% APR card can also provide a window to pay off the purchase without incurring interest, and some cards offer extended warranties or purchase protection on items bought with the card. | If you cannot pay off the balance promptly, you risk accruing interest, which can outweigh any rewards earned. A large purchase can increase your credit utilization ratio, which can harm your credit score. Experts recommend cardholders to keep their credit utilization below 30% of your credit limit. | A large purchase is not just determined by the item’s cost but rather by how it affects your credit utilization ratio. If the purchase pushes you over the 30% threshold, it is generally considered a large purchase. |
What types of large purchases are most commonly made with credit cards?
Cardholders can use credit cards for several big spendings, which can offer benefits such as rewards points, purchase protection,s and the ability to manage cash flow. Cardholders need to make sure to pay off the balance promptly to avoid accruing interest.
Common large purchases made with credit cards typically include:
- Appliances and Electronics: Purchasing household appliances and electronics is a prevalent use of credit cards. These items often come with high price tags, and many credit cards offer purchase protections that can cover damage or theft shortly after the purchase.
- Travel Expenses: Travel-related expenses such as flights, hotel stays, and rental cars are frequently charged to credit cards. Many travel rewards cards provide bonus points for these purchases, along with additional benefits such as trip cancellation insurance and luggage protection.
- Furniture: Buying furniture is another common large purchase made with credit cards. Similar to electronics, furniture purchases can be substantial, and using a credit card may provide added protection and rewards.
- Medical Bills: Some individuals also put significant medical expenses on their credit cards. This can include bills for treatments or emergencies, especially if they need to manage cash flow temporarily.
- Home Improvements: Expenses related to home renovations or repairs can also be charged to credit cards. This allows homeowners to manage costs while potentially earning rewards on large transactions.
- Insurance Premiums: Some people charge their insurance premiums, such as home or auto insurance, to their credit cards, which can help in managing cash flow while earning rewards.
- Car Rentals: Renting cars is often done with credit cards due to the associated benefits, such as insurance coverage provided by the card issuer.
How Do Credit Cards Work for Large Purchases in USA?
Credit cards can be useful for large purchases, offering convenience, rewards, and protection, but it’s important to consider the potential drawbacks, such as high interest rates and debt accumulation.
Here are some good scenarios:
- Using a credit card responsibly by paying your balance on time and having a low credit utilization ratio is one of the best ways to build or improve your credit score. If a cardholder has a good credit score than it can open up more opportunities for loans and credit.
- Most credit cards offer an extra time period to the cardholders between purchase and payment, typically between 20–50 days, during which the bank does not charge interest, which allows you to pay off purchases without incurring extra costs.
- Many credit cards offer an extra layer of protection against fraud. Most issuers offer zero-liability policies, which means that you won’t be held responsible for fraudulent charges.
- Credit cards often come with exclusive deals, such as discounts on dining, shopping, or travel bookings, which can save you a significant amount. Some credit cards even offer specific brand offers that provide exclusive discounts or cashback.
- A credit card can act as an emergency fund, which gives you access to instant credit for unexpected situations, such as medical expenses or car repairs.
- Many credit cards offer travel benefits and perks, such as airport lounge access, no international transaction fees, and free travel insurance. Premium cards may also cover lost luggage, trip cancellations, or delays.
- Credit cards often provide purchase protection that covers items that are lost, damaged, or stolen within a specific time frame, and some cards extend the warranty on products.
Choosing the Best Credit Cards for Large Purchases in USA?
When choosing a credit card for a large purchase in the USA, several factors come into play to maximize benefits.
Here’s a breakdown of the key selection criteria:
Earning a Welcome Offer or Sign-up Bonus
Utilizing a large purchase to meet the spending requirements for a new card’s welcome offer can provide significant value.
For instance, the Amex Business Platinum offers a substantial bonus after meeting a high spending threshold, and the Ink Business Preferred Credit Card also provides a large bonus after spending a specific amount within the first few months.
Earning Rewards
Some cards provide extra rewards on large purchases.
For instance, the Business Platinum Card from American Express gives 1.5x points per dollar on purchases of $5,000 or more (up to $2 million per year). The Ink Business Premier Credit Card earns unlimited 2.5% cash back on purchases of $5,000 or more.
Introductory APR Period
An intro APR period provided by the credit card companies can be beneficial for cardholders if they need to finance a large purchase over time.
For example, the Chase Freedom Unlimited card is particularly known for its introductory APR, which adds benefit for the cardholders.
Flat-Rate Rewards
Flat-rate cards that earn across all categories are a great option because many large purchases, such as wedding expenses or home renovation costs, which may not fit into traditional bonus categories. The Capital One Venture Rewards Credit Card offers 2x miles per dollar on all purchases. The Citi Double Cash Card earns 2% back on every purchase (1% when you buy and 1% when you pay your bill).
Purchase Protection
Purchase protection is a benefit offered by credit card companies and payment platforms that provides consumers with coverage for eligible purchases against theft, accidental damage or other issues within a specified time frame after the purchase. For instance, the American Express Gold Card offers an additional perk of purchase protection to cardholders.
Benefits of Using Credit Cards for Large Purchases
- Convenience and Immediate Access to Funds:
- Credit cards provide immediate access to funds, which allows cardholders to make purchases without needing cash upfront.
- This convenience is especially useful for emergency purchases or when cash flow is limited.
- Rewards and Cashback:
- Many credit cards offer rewards programs that can earn you points, miles, or cashback on large purchases.
- These rewards can be redeemed for future purchases, travel, or statement credits, adding value to your purchase.
- 0% Introductory APR:
- Cards with a 0% introductory APR can give you more time to pay off large purchases without incurring interest charges.
- This is beneficial for managing cash flow and avoiding debt if you can pay off the balance within the introductory period.
- Purchase Protection and Benefits:
- Some credit cards offer purchase protection, which can cover items against damage or theft for a specified period.
- Additional benefits such as travel insurance, rental car insurance, and extended warranties may also be available.
- Building Credit History:
- Using a credit card responsibly by making timely payments can help build or improve your credit score.
- A good credit score can lead to better loan terms and financial opportunities in the future.
- Sign-up Bonuses:
- New credit cards often come with lucrative sign-up bonuses that can be earned by meeting minimum spending requirements within a set timeframe.
- Large purchases can help meet these requirements and earn bonuses such as cashback, points, or miles.
- Interest-Free Period:
- Credit cards typically offer an interest-free period (grace period) between the purchase and payment due date, which can range from 20 to 50 days.
- This allows you to delay payment without incurring interest charges if you pay the balance in full before the due date.
Frequently Asked Questions
Can you make large purchases with a credit card?
Yes, credit cards are commonly used for making large purchases due to their convenience and rewards benefits.
Which credit card is best for high spenders?
The American Express Platinum Card is often recommended for high spenders due to its premium rewards and travel benefits.
Which credit card is most used in USA for large purchases?
While specific usage data isn’t provided, cards like the Chase Sapphire Preferred and American Express Platinum are popular for large purchases due to their rewards structures.
Can credit cards be used for financing large business purchases?
Yes, credit cards like the Chase Ink Business Cash and Capital One Spark Cash Plus are designed for financing large business purchases.
How do credit cards support cardholders in making large purchases?
Credit cards support cardholders by offering rewards, introductory APRs, and sign-up bonuses that can offset the cost of large purchases.