Everywhere you turn, from the junk in your mailbox to the advertisements in the windows of the bank, you see credit cards. There are plenty of personal finance experts and their companies that spend a lot of their time being paid to tell us all why we shouldn’t be using credit cards and there’s a very good reason for that. Credit cards are little slices of temptation, and they tempt us into using money that isn’t officially ours, which can then spiral out of control and put us into debt.
That’s the scary part. However, if you know how to access a little self-control, there are plenty of benefits to using credit cards and keeping your debit card and cash purchases to a minimum. If you can do that, you can find yourself benefitting from actually using the credit line that you have been given. We’ve got some of the reasons you should make friends with those slices of plastic and stop being afraid to spend on them!
Free Money! Okay, so the actual credit line is NOT free money, let’s not get confused. However, plenty of companies that offer credit cards are offering out sign up bonuses, which IS free money. There’s nothing as good as a perk when you sign up to something new, and a credit card that hands you $250 simply for signing up? Well, that right there is a wonderful welcome!
Reward Points. Most credit cards offer a rewards points programme, and these programmes are a big reason why paying with plastic is better than paying in cash. Check out The Points Mom for advice on how you can spend those nifty little points that you’ve racked up simply by making purchases on your credit card. Credit card reward options are pretty much endless, which means you can use them in a lot of stores. Imagine, shopping with your credit card, and being able to shop even more with points!
Cash Back. Cash back cards have been around for a while, and you can go to Target or wherever you enjoy spending your money, and use your credit card to get up to 3% of your purchase back. Now, we don’t know about you, but being able to earn money by going shopping is a pretty good hook for using that card!
Safety. Possibly one of the biggest positives of using a credit card over cash is the safety net. If a purchase is made and it turns out that you have lost that purchase or booking, you can get your money back from your credit card company. You avoid the losses that are prominent with fraud, and you minimise the chance that you are out of pocket.
Credit cards are not something to be afraid of. When you use it correctly, your credit card can be a lifeline for you. If you are disciplined in your nature, you can enjoy using a credit card without falling into tough times and relying on it. They are not there to bail you out, simply to benefit.