Why to Use a Credit Card for Every Purchase

Credit cards used to get a bad reputation.  I remember being a kid and always hearing the perception that if you used a credit card it meant you didn’t have the money, like you were broke or something, but whether that was just my ignorance or not, that is certainly not the case anymore.  There are so many pros to using a credit card, that I have since put my debit card away and only use a credit card now for every purchase.  The trick is just not to spend too much so you can pay the full statement balance by the due date.

Grace Period

The nice thing about charging on a credit card is that it does not take from your bank account right away, it actually gives you a chance to have the money in time for the statement that will be due next month.  The catch is, you need to have the willpower to not overextend your spending so you will be able to pay the full statement balance, otherwise you will start carrying over a balance and begin to pay interest until the balance is paid off.

Easy to Book Hotel & Rental Car

Booking travel on a credit card is always a must, especially when it comes to deposit holds.  When you check into a hotel or rent a card, the company will place a hold on your account that can be up to a few hundred dollars to ensure that there is no damage, and then the funds are released.  If you use a debit card it takes from your bank account and can be a week or two before you see the money again.  With a credit card, they can put whatever hold they want on there, but will go away in a few days, long before the next statement balance.

Fraud Protection

There is so much fraud these days, it’s happened to me twice in the past year.  Fortunately, this time it was on my credit card after I learned my lesson never to use my debit card again.  With the debit card, much like a deposit hold, will be taken from your account and will not come back until the disputed funds are resolved, which who knows how long that will take.  With a credit card, they can sort it out, without being on the hook for the balance until next month.

Rewards!

Last, but certainly not least, as I was saving the best for last in this case, is the credit card rewards.  Whether it is points that can be redeemed for a gift card, or actual dollars that you can receive a cashback check back at the end of the year.  Now yes you can spend more to earn more rewards, which can be tempting, but scary as you are increasing spending, but if you only take the normal purchases that you make in a month anyways, you are earning free money back on what you would have spent otherwise.

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