Why you should pay with a credit card.
Credit cards are the safest and most convenient plastic that exists and thanks to them it is possible to build credit, generate points, get bonuses, pay no interest and best of all, it helps you save money. You may be wondering, how a simple credit card can help you save money? I’ll explain now.
Thanks to the limit of your credit card, if you stick to it, you will only spend the minimum or better said, what your credit limit allows. Many people spend too much because they always pay with cash and not with a credit card.
So it is recommended that it is the other way around, stop paying with cash and start using a credit card. It is not a problem at all, since almost all establishments, no matter how small, accept credit cards
With a credit card it is safer and more convenient to pay; if you lose your wallet or are robbed, you should know that any cash you were carrying will not be recovered. However, if thieves go on a spending spree with your credit cards, you generally won’t be responsible for fraudulent purchases. It may take some time to sort out the resulting mess, but you won’t lose any of your money.
Debit cards also pose a risk. When your credit card is used fraudulently, it is the card issuer who loses money. When your debit card is used fraudulently, the money leaves your bank account.
Assuming you report the fraud promptly, you should get your money back, eventually. It could be a while until things are resolved. During that time, checks may bounce, automated payments may be rejected due to insufficient funds, and you may have difficulty covering your bills. A horror!
With credit card earn bonuses; credit card bonuses exist to encourage you to use your credit card, and they are very persuasive. With a simple flat-rate card that pays the same amount on every purchase, you can get 1.5% or even 2% back on every dollar you spend, either in cash or as points or miles to redeem for travel or other things. Spend $1,000 a month, and you could earn $180 to $240 a year with no special effort.
Other cards pay higher rewards in specific spending categories, such as groceries, gas or restaurants.
As mentioned earlier, credit cards help you monitor your spending; controlling your budget can be a challenge no matter how you spend your money.
But figuring out where the cash went is especially difficult. Misplace a receipt, and often there’s no other record of how much you spent and where you spent it. Let alone enter one into your check register, and you’ll have to wait for the recipient to cash it before you can trace it, and some people have been known to hold on to checks for months.
Most importantly and interestingly, credit cards help build credit; you don’t need to have a credit card to have good credit, and you certainly don’t have to carry a balance. But careful use of a credit card is the best way to improve your credit scores, and good credit opens many doors.