Smart lady working on a laptop

Image source: Getty Images

Choosing the right type of purchases to put on credit cards can not only help you keep to budgeting goals, but also save you some frustration with merchants and service providers.

In the video segment below, The Motley Fool analysts Michael Douglass and Nathan Hamilton talk about one specific purchase that may be best placed on credit.

Michael Douglass: We talk a lot, and I feel the financial me in general talks a lot about things not to do with credit cards. Let's talk instead about a purchase that makes a lot of sense for credit cards.

Nathan Hamilton: Yeah, there are several of them, but in this instance we're going to focus on service provider purchases. What I mean by service provider purchases, that's a renovation on your house. It's a contractor, it's landscaping. Anything that would fall into into the those categories. It is important to look at it because you may not be happy with the results. If you pay by cash, or if you pay by check, there is nothing to fall back on if essentially the work done isn't up to what you're expecting. The credit card specifically you can implement what's called a charge back. It is an advantage that you do have of putting it on plastic in this case. Essentially all you need to do if you've made attempts with the service provider to have them fix the problem, or they've been unresponsive, you're next step is to call your card issuer and say, "Okay. I want to request a charge back for this specific charge." In some instances, you can get your cash back.

Douglass: Yeah. That seems like a potential win if nothing else happens. Of course, as consumers we should be protected to make sure that the service is rendered or the services we were promised.

Hamilton: Yeah. You can't do on debit. Some people avoid credit cards for various reasons. Some find the utility in credit cards for other reasons. There are certainly instances where they do make sense, and where they don't make sense, and it's important to focus on that.

Douglass: Absolutely. We've got a lot more information about credit cards, both do's an don't's as well as information on the best credit cards for 2017, and a lot of different categories. Whether you're interested in travel, whether you're interested in a balance transfer card, whether you're interested in cash back, at Check us out. Again, that's at It's a lot of free information. Our interest is really just helping you be smarter with your money. That's what we're all about here at the Motley Fool.