A credit card is a powerful piece of plastic. Not only does it make shopping seamless, but Many credit cards also come with many perks, such as the ability to save money and enhanced consumer protections. So long as you’re a responsible card user with no outstanding debts, There’s no reason to use your credit card to pay for almost everything.
Top Reasons to Use Your Credit Card
You Can Rack Up Reward Points
You can get rewarded for purchases that you wouldn’t make otherwise. You can earn rewards points by spending every dollar on credit cards. These points can be used to redeem for merchandise, travel rewards, gift certificates, merchandise, and other perks, depending on which card you have. This is a great way for you to boost your financial goals, provided that you use your card responsibly.
It helps you build credit
Your credit score is determined by a variety of factors including your credit utilization, your repayment history, and length of credit history. Your credit score will rise if you use your credit responsibly. This means making timely payments, not keeping your credit cards open for too long, and using only a small amount of your available credit.
A sign-on bonus might be available
A major sign-on bonus can be earned if you have just opened a credit card. You could get a cash bonus or additional rewards points, as well as cashback.
Also read: Top 10 Financial Calculator Apps
It protects you from fraud
It is possible to dispute fraudulent purchases made using your credit card. With debit cards, things aren’t always as smooth. The money has been taken from your account and needs to be recovered. Credit cards can provide you with extra peace of mind by knowing You won’t lose any money in the case of theft or fraud.
They make it easy to track your spending
It can be difficult to keep track of how much money you spend on cash. However, when you use a credit card to pay for your purchases, you can easily see what you’re spending. This will allow you to track your cash flow and identify areas where you may be overspending.
You can get cash back on purchases
A cash-back credit card allows you to save money on every purchase. Sometimes, the amount of cash you receive will depend on what category you are shopping for. For example, if you buy groceries from a specific retailer or if you shop at a particular store. Cash-back cards that pay a fixed amount will reimburse you for all purchases regardless of category.
It protects you from dishonest vendors
If possible, pay with your credit card for home improvements and auto repairs. If something goes wrong, you can easily dispute it and get your money back. It’s much more difficult to get your money back if you pay by check or cash and your car breaks down again, or your contractor does an inferior job installing new flooring.
You get extra time to pay
It is not a good idea for your credit card to charge expenses that you aren’t able to repay in full by the due date. However, this can be helpful for purchases made between paychecks when you don’t have enough money to cover the purchase. In between payments, credit card payments allow your money to grow in interest-bearing accounts such as a savings account with high interest or a checking account with interest-earning.
It can provide you with rental car insurance
Credit cards often come with many consumer protections. One of these is rental car insurance. If you rent a car using your card, In the event of an incident, you will be reimbursed for theft or collision damage.
You can earn frequent flyer miles without getting on a plane
Major airlines have created credit cards that allow you to earn miles for purchases. According to Investopedia, one mile is equal to $1.
It can protect your travel plans
Some credit cards may offer travel insurance. Even if your book is non-refundable, some cards may reimburse you for cancellations or delays due to sickness, severe weather, or other circumstances. If your trip is delayed or your baggage delayed, you might be eligible to receive reimbursement for lodging and meals.
You can get free checked bags
You can get free checked bags with certain airlines when you book travel using a travel reward card. This is a valuable perk for frequent flyers.
You can earn hotel loyalty points
You can transfer points from your credit card to a hotel loyalty program. This allows you to swipe your way to free rooms and upgrades.
Also read: Top 10 Business Credit Cards for Startups
All your purchases are protected
You also get protection on your purchases as a perk of some credit cards. You can get reimbursement for damaged or stolen purchases, as well as extended warranties on some products.
You can save on interest
You can save a lot of interest by moving your debt to a balance transfer card with a 0% annual percentage yield. Be sure to repay any outstanding debt before the introductory period ends and the interest rate increases.
It is less likely that you will be stuck paying fees
Overdraft fees are charged on debit cards. In addition, individual transaction fees may be added. While some credit cards may have an annual fee, those who use them and pay their bills on time and in full will likely not be charged any fees.
They can save you money at your favorite retailers
You can save money when you shop at your favorite stores with retail credit cards. You might be eligible for discounts, cashback on purchases, or points that you can redeem for future purchases with store credit cards. However, store credit cards often come with high-interest rates so make sure you pay them off on time.
You can save money on takeout
Some credit cards offer free delivery if they partner with food delivery companies. This can save you a lot of money if you order lots of takeouts.