If you talk to some financial advisors, they will tell you to cut up all of your credit cards and never to use them again. While this may sound like a good idea because it will prevent you from getting into an overwhelming amount of debt, this advice seems to assume that you could never be responsible with your credit card and should just give up on ever using one again. The reality is that there are many reasons to use your credit card on a regular basis. Therefore, better advise would be to use your credit card more often, but to budget wisely so you can pay off the bill at the end of each billing cycle and avoid falling into debt. Here are the top five reasons you should use your credit card more often.
Reason #1: It Provides You with Purchase Protection
When you purchase items with a credit card, you automatically receive extra protection that you do not get when you purchase items with cash, check or debit card. This is because you can dispute charges and, if you have a good case, the credit card company will refuse to pay for the item. In addition, many credit card companies provide extra protection, such as extended warranties, when purchases are made with their cards.
Reason #2: Losing it is Not as Traumatic
While no one wants to lose a credit card, losing a card is less scary than losing cash or a debit card. After all, once you lose cash, you likely will never see it again. In addition, when you lose a debit card, an unscrupulous person can use it to make purchases and there is no guarantee you will ever get that money back either. When you lose a credit card, on the other hand, the most you will lose is $50. In many cases, you won’t lose anything because many credit card companies provide 100% protection to their customers.
Reason #3: It’s Convenient
There are no two ways about it: using a credit card is simply more convenient than using cash or a debit card. You don’t have to worry about subtracting your purchases from a checkbook or fumbling for the right change when you use a credit card – you just swipe it and go.
Reason #4: Paying Bills is Made Easier
Many people find that budgeting and paying bills is actually made easier when using a credit card. This is because you simply pay off the entire bill at the end of each billing cycle. If you set up your utility bills and other monthly bills to be automatically paid by your credit card, you don’t have to worry about sending off checks each month. Just send out one at the end of your credit card’s billing cycle!
Reason #5: You Can Make Money
If you are smart with your credit card, you can even make some money. With the help of a rewards credit card, you can make a decent amount of extra cash if you pay your credit card off at the end of each billing cycle. You won’t see that happening when you pay for purchases with cash!
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