Benefits of Using Credit Cards

Owning and using a credit card can mean different things to different people. There are ways to use credit cards responsibly. Through the course of our lives we have been in a position to have to use credit cards and carry a balance for a period of time, but now that we are more secure financially we have found ways to make the credit cards work for us. Now instead of us paying to use the credit cards, the credit cards are paying us.

The Benefits of using Credit Cards for your purchases 

A lot of people are so afraid of credit cards that they miss out on all the good things they can bring when used responsibly. I for one use credit cards for everything that I can. We always pay them off in full at the end of the month so we pay nothing to use credit cards, in fact the credit card companies pay us to use them!

1. Reward Points that translate into Cash

 - There are a variety of different credit cards, with all different types of rewards. We have different cards that we use for different purchases. Our cards pay between 1-5% cash back on all our purchases. We run all our bills and purchases through a credit card and end up getting $100 back some months. Pay attention to what type of rewards each card offers. Some pay higher rates for gas, some for restaurants. Maximize your rewards by using the right card for the right purchase.

2. Make bill paying easier and more convenient 

- We pay many of our bills automatically with our credit cards. I pick one card to do all of these so that it is easier to keep track of the bills. If you want you can print off your statement and file it away with your records.

3 Provide a layer of security between you and your Cash

 - One of the biggest perks of using credit cards is the fact that most of them will back you up if you buy something and have a dispute with a merchant. Also if your credit card is lost or stolen, you will not be held responsible for any fraudulent charges. If you currently use a debit card for everyday purchases, switch to a credit card to protect yourself from a huge headache. If someone steals your debit card, before you know it, your checking account could be cleaned out and then your bank will start charging you overdraft fees. You will eventually get it straightened out but not until you spend hours on the phone calling all the business' and people whose checks bounced.

4. Allow you to pay off necessities at low interest rates

 - If you do have to carry a balance for a period of time, credit cards can be a good choice. If you do not normally carry a balance, use the card with the lowest interest rate or even better, sign up for a new card with a 0% introductory rate, or take advantage of a balance transfer offer. If you have cards with higher interest rates, don't assume that you have to live with them. Often a phone call to your bank can get them reduced. If not there are plenty of other banks to check with. This is another great reason to always pay your bills on time and keep your credit score up. The better your credit, the more options you will have.

5. Can help you build credit - Having and using Credit Cards is a great way to build your credit. The key is to not max out your credit cards every month and to always pay your bills on time. One late payment can cause a lot of trouble for you. If you are ever late by accident, always call the credit card company and explain. Often they will give you a break if it is only one time. Sometimes they will even waive the late fee. Just remember that it never hurts to ask for fees to be waived.

6. Convenient and safer to take on trips - Credit Cards are great for travel. Often you will need one anyway for reserving hotel rooms. It is much safer to carry a credit card than a wad of cash.

by Becky Brooks