I always remember growing up where it always seemed like it was frowned upon to use a credit card, giving off the impression that you don’t have the money to be making the purchase so you’re using the plastic. While I guess that is the case for some, and those that got into debt pretty easy, but there actually are financially smart reasons to use a credit card, probably even more these days. Where maybe I was given the wrong impression when I wasn’t old enough to actually appreciate a credit card, I now know that it can actually make sense to use them for every purchase. With so many reasons to use a credit card for every purchase, there really isn’t a reason to go back to using a debit card going forward any longer.
For the purchases you make in a month, you are not responsible for the balance until the following month when the statement balance comes in. That can be great if you need a window to pay back purchases, however, you do have to be careful because there really is no stop when making purchases with a credit card, of course until you hit your credit limit, so you really need to be disciplined when it comes making purchases, in that you can afford to pay the full statement balance and avoid paying any interest after that point, otherwise causing you to do into debt.
No matter if you are in the market for a mortgage, a car lease, a personal loan, or these days, even a job, you can have your credit reviewed. When looking to borrow, the best interest rate you can have available to you on the market comes with excellent credit, with any increase in APR costing your money, so it’s important to strive for the best. While carrying a balance on your card will not help your score, due to increasing your credit utilization, however charging and paying the full balance with on-time payments every month can keep continuing to raise your score.
Provides Fraud Protection
You hear every week it seems about more information getting stolen, whether it is something snapping a pic of your card at the gas pump, or even having a large restaurant or store have a data breach where personal information is gained access. If you have fraudulent charges on your debit card, you risk your bank account being wiped out until the charges are reversed, however long that will be, but by using a credit card you can dispute the charges and then will stay in pending status until resolved, without being responsible for the charges.
Rewards Add Up
Probably the best reason to use your credit card for every purchase is in the form of rewards. Whether that is airline miles, points to redeem for gift cards, or even a simple cashback check every year, depending on the card, you can earn rewards just by making the purchases that you would have made anyways, and not using the card is really just leaving free money on the table. You just have to resist temptation to go overboard on the purchases just to see the rewards add up, otherwise if you can’t pay the full statement balance you will begin to be charged interest, which could outweigh any rewards you would get anyways.
Easy Dispute Process
While disputing fraud charges are important, even for the sake of your bank account, it’s also important to have your back if there was a job that was not well done. If you have services that were to be provided to you and not delivered upon, your credit card can act to dispute these charges on your behalf, which could save you from otherwise regretting paying with cash or writing a check that you can pretty much kiss goodbye, stuck with the services provided.
It was really only explained to me recently that my credit card offers rental car coverage, when I had my rental car scratched while parked for a few days, and I had declined rental coverage. Fortunately for my friend you had mentioned to me, by calling my credit card that I had rented the car on, they were able to provide coverage that covered any payments that I would have had to make, which was a huge plus in my book, and probably just as important as any rewards that I would have earned for the entire year if you really think about it.