Best Credit Card for Big Purchases

Best Credit Card for Big Purchases

Find out which credit card will benefit you the most when making your next big purchase.

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To maximize your rewards and benefits, it's important to ask yourself before every transaction if the credit card you are about to use is the best one for the situation.

When dealing with travel expenses, it makes sense to use a travel credit card. When buying groceries, you should use the credit card that provides the most points for supermarket shopping. However, what is the best credit card if you are making a generally big purchase?

There are a few ways to tackle this question, so we have provided you with our recommendation from a variety of perspectives. Any of the following credit cards would be a great selection for you when handling big purchases. Therefore, simply choose the one you believe best fits your needs, and that will be the best credit card for you.

Great for Cash Back Rewards: Discover it® Cash Back

If you can take full advantage of the Discover it® Cash Back credit card's rewards system, you stand to get a high cashback rate. Cardholders earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate, 1% unlimited cash back on all other purchases - automatically.

You can check the bonus category calendar at the Discover website. For 2021, the categories include grocery stores, Walgreens and CVS (January-March), gas stations, wholesale clubs and streaming services (April-June), restaurants and PayPal (July-September), Amazon.com, Target and Walmart.com (October-December). If your large purchase falls under one of the bonus categories and it's less than the $1,500 quarterly limit, it would be smart to apply for the Discover it® Cash Back card and use it for this transaction.

The Discover it® Cash Back card also offers new cardholders an Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. If you made a large purchase in one of the bonus categories, that means you'll get up to a whopping 10% cash back on purchases up to $1,500. No other cash-back program can rival this one if you're able to time it well.

Great for Meeting a Sign-Up Bonus' Spending Requirements: Chase Sapphire Preferred® Card

  • On Chase's Secure Website

The Chase Sapphire Preferred® Card is an all-around great credit card that is often featured at the top of our best credit card lists. This credit card features one of the best sign-up bonuses available: Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn a $50 statement credit towards grocery store purchases within your first year of account opening.

The Chase Sapphire Preferred® Card is a stellar travel rewards card, offering a 25% rewards boost on points when they're redeemed for travel purchases through the Chase Ultimate Rewards portal. Therefore, the 60,000 bonus points translates to $750 when the points are redeemed through the Chase Ultimate Rewards portal. Furthermore, you will receive 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases worldwide. This is a great deal if your large purchase is related to either of these categories.

If you are making a large purchase, then the Chase Sapphire Preferred® Card would be a great choice due to its high sign-up bonus. The large purchase may take up a solid portion of the $4,000 in net purchases that you need to fulfill, and you would still have the remainder of the three months to gradually spend whatever amount is still required. Although this card's sign-up bonus is difficult for some people to attain, the large purchase can help you get there.

Great for a Business: Ink Business Preferred℠ Credit Card

  • On Chase's Secure Website

The Ink Business Preferred℠ Credit Card is similar to the Chase Sapphire Preferred® Card in many ways, but it's for small businesses. Cardholders can Earn 100,000 bonus points after you spend $15,000 on purchases in the first 3 months from account opening. If you redeem those points for travel purchases through the Chase Ultimate Rewards portal, then the point value increases by 25%. That effectively increases the value of the sign-up bonus to $1,250. If your large purchase will significantly help you toward fulfilling the minimum to access the sign-up bonus, then it would be wise to put the purchase on this credit card.

Although the two credit cards are very similar, they do have noteworthy differences to keep in mind when deciding between the two. The Ink Business Preferred℠ Credit Card is a business credit card, while the Chase Sapphire Preferred® Card is intended for personal use. The categories for which you earn the most points are also very different between the two credit cards. Consider where most of your spending goes, and pick the credit card that would offer you the most rewards for your specific spending habits.

The Ink Business Preferred℠ Credit Card lets you Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases—with no limit to the amount you can earn. The broadness and strong returns on these various categories make this card an extraordinary choice.

Also Great for Businesses: Capital One Spark Cash for Business

  • On Capital One's Secure Website

This credit card features a solid sign-up bonus: Earn a one-time $500 cash bonus once you spend $4,500 on purchases within 3 months from account opening. This is a strong sign-up bonus, even though it pales in comparison to the immense sign-up bonuses offered by its two Chase counterparts.

The reason the Capital One Spark Cash for Business stands out is because it offers the highest flat cash-back rate of any of the cards listed thus far. This credit card provides cardholders with 2% Cash Back for your business on every purchase, everywhere. Therefore, you do not need to worry about picking the ideal category for your large purchase, which is a concern with the other cards listed here.

If your large purchase is not encompassed by the Discover it® Cash Back's rotating categories or the specialties of either Chase credit card, then the Capital One Spark Cash for Business is a great default credit card. Its 2% cash-back rate is highly competitive, and this is a robust all-around credit card without any clear flaws.

So What's the Best Credit Card for Large Purchases?

The best credit card for big purchases can only be determined by carefully considering your circumstances and needs. Depending on the size and type of your big purchase, some credit cards will be better than others.

You need to consider how the price of your big purchase will affect your net purchases for the initial months of opening an account. If your purchase is large enough, then it would be best to apply for either the Ink Business Preferred℠ Credit Card or Chase Sapphire Preferred® Card, since both offer the highest sign-up bonuses. The Ink Business Preferred℠ Credit Card has a sign-up bonus that is more than double that of the Capital One Spark Cash for Business.

If your big purchase falls within a bonus category of the Discover it® Cash Back, then that would be the ideal choice. This point is further emphasized by the fact that the Discover it® Cash Back doubles your cashback bonus at the end of the first year of opening an account, thus providing up to 10% cash back.

If your large purchase does not cleanly fall into the bonus categories for any of the other credit cards, then the Capital One Spark Cash for Business is a great all-around option if you are a small business owner. The flat 2% cash back is valuable and the card also offers a robust sign-up bonus: Earn a one-time $500 cash bonus once you spend $4,500 on purchases within 3 months from account opening.

Ultimately, it is up to you to pick which credit card will best fit your needs. The good news: You have a lot of great options.

The information related to the Ink Business Preferred℠ Credit Card has been independently collected by ValuePenguin and has not been reviewed or provided by the issuer of this card prior to publication.

Yowana is a former product analyst at ValuePenguin, specializing in credit cards, rewards programs and travel. He previously covered mortgages, banking and insurance for the website. Yowana graduated from Columbia University with a B.A. in Political Science.

These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

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How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

Example of how we calculate the rewards rates: When redeemed for travel through Ultimate Rewards, Chase Sapphire Preferred points are worth $0.0125 each. The card awards 2 points on travel and dining and 1 point on everything else. Therefore, we say the card has a 2.5% rewards rate on dining and travel (2 x $0.0125) and a 1.25% rewards rate on everything else (1 x $0.0125).

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