Why Should I Use a Credit Card?

Should you be using a credit card right now to make your purchase? Credit cards offer some tremendous advantages when compared with cash or even debit cards, especially when they are used smartly.

If you can pay your balance off every month before interest rates accrue, then you should definitely use a credit card for most purchases!

Here’s why:

Credit Cards Offer Reward Points

Whether it is up to 5% cash back on specific purchases, airline miles, or rewards points that can be turned in for specific goods or services, credit cards offer more variety than debit cards when it comes to rewards. In turn, this helps you get more value for your income overall, something that cash simply cannot provide.

Credit Cards Offer Theft Protection

The recent hacking incident at Target, along with other retailers, might seem like credit cards aren’t safe, but the opposite is true. If you have your cash stolen, then your money is gone! If your credit card information is stolen, you have theft protection options that you can immediately implement to limit losses. Worst case scenario: you change your card number and write letters to the credit reporting agencies.

Credit Cards Help You Build a Positive Purchase History

In order to purchase big ticket items at a good interest rate, you need to have an established credit history that proves you will manage your debt effectively. Debit cards and cash do not help provide your credit score with points, but a well-managed credit card will!

Credit Cards Help You Manage Inflation

Even though monetary inflation is something we all just seem to adapt to as time moves on, inflation is always occurring. A purchase of something today will cost slightly more tomorrow. Supply and demand can cause dramatic rises in prices as well. By using a credit card to purchase today, but pay later, you can actually save a dramatic amount of money over the course of a year.

Credit Cards Give You a Written Purchase Record

Let’s say you go to the store to purchase a loaf of bread. The listed price is $2, which you see as a pretty good deal, so you buy it. When you get your statement in the mail from your credit card company, you see that the store actually charged you $5. With your receipt showing you should have paid $2, you can dispute the charge.

Credit Cards Can Give You Extended Repayment Terms

Do you need new furniture? Maybe some new electronics, like a laptop? With up to 18 months of interest-free purchases on a credit card, you can get the big ticket items you need today without paying anything extra for it while making affordable monthly payments.

Credit cards do often carry a surcharge of up to 1.5% for a purchase, but not every vendor passes on this fee to the consumer. When compared to carrying a large amount of cash or even a debit card, it is easy to see what you should be using a credit card for your purchases today.

If managed well, using credit cards consistently can secure for you a strong financial future!

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