If you are a new credit card holder, then you probably don’t know much about what it can do for you. Not only does it make shopping a smoother experience but many credit cards come with a number of perks, including ways to save money on your purchases and more. As long as you are a responsible credit card user without any large debt, there is not reason why you shouldn’t use your credit card to pay for nearly everything. Continue reading to see more reasons to use your credit cards more!
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It Helps You Build Credit
Your credit score is a type of rating that is given to you based on a number of factors, including your repayment history, length of your credit history and your credit utilization. With responsible credit card use, such as on-time payments, keeping credit cards open for long period of time and only using a small percentage of your available credit can help make this score go up.
Get a Sign-On Bonus
Often times, opening a new credit card might make you eligible to earn some sort of welcome bonus. This could come in the form of a cash bonus, extra rewards points, or extra cash back. If you normally spend a card’s minimum spending requirement within a certain time period, it might be worth it to go for that card.
As mentioned above, you can get rewarded for your purchases whenever you use credit cards to pay. Many credit cards nowadays offer some sort of rewards points for every dollar you spend. There are cards out there for any type of reward you want to earn. So, if you want to earn some free flights, sign up for a card that earns you Frequent Flyer Miles. If you want free stays at hotels, then sign up for a card that has transferable points to partner hotels. This can be redeemed for travel rewards, gift cards, merchandise and more, depending on the card.
Protection From Fraud
When using money or a check, it is easy for someone to either steal your physical cash or forge your check. With credit cards, it is much harder for someone to make fraudulent charges because these types of charges can be easily disputed through your card issuer. However, things aren’t as easy with a debit card, since funds are taken right from your account and must be recovered. Credit cards use credit so it is much easier to dispute.
Often times, banks or financial institutions will offer some type of app or online platform to help you track your spending. On top of helping you stay safe from fraudulent charges, it also helps you manage your spending since everything is on one spot.
Extra Time To Pay
Although it is never a good idea to pay your bills late, sometimes there is an emergency that requires you to spend a lot of money. This is where credit cards come in handy because it allows you to make purchases when you’re in between paychecks and on’t have the money in your account to cover the purchase. Paying with credit cards can also allow your money to grow in interest-bearing accounts, such as a high-interest savings account or interest-earning checking account.
Great For Travel
Credit cards can also offer some from of travel insurance too. What this means is that some cards will reimburse you for a trip that is canceled, cut short by sickness, severe weather or some sort of other situation, even if your booking is nonrefundable. You might even be able to get reimbursed for accommodations and meals if your trip is delayed or reimbursement if your baggage is delayed.
With some travel rewards cards, they will throw in the perk of getting a free checked bag on certain airlines when you book with your card. This can be a great perk for frequent flyers.
Save Money With Credit Cards
Debit cards will charge overdraft fees and may also charge individual transaction fees. Although some credit cards out there have annual fees, if you use one without an annual fee and pay your bills on time and in full, you will be on the road to a completely no fee card and good credit.
Additionally, if you have a favorite retailer or you’re a big shopper, consider getting a credit card that is co-branded with your favorite retailers. These store credit cards can sometimes off you discounts, cash back on purchases or rewards points that can be redeemed for future purchases. They tend to have high interest rates, so make sure you pay these cards off on time and in full.
If you tend to use delivery and takeout services, there are some credit card that have partnered with food delivery services to get their cardholders free delivery. Using certain credit cards that offer this perk can be a huge money-saver.
There are many reasons to use credit cards more as we mentioned in the post. It can be a big money saver because it offer cash back, points, miles and more for purchases that you tend to make. There are a variety of credit cards out there, so if you’re a frequent flyer or a food lover, there is a card for you. For more ways to save money, we suggest making your purchases using a credit card to earn points/cash back! Furthermore, check out our list of the latest bank bonuses to earn free money!