It used to be that credit cards had a bad reputation, after all, if you’re not careful with your spending you can quickly fall into debt and struggle to get out. While it’s nice that you can charge throughout the month and the statement balance isn’t due until next month, you get to save up a couple paychecks to be able to pay it back, but if you don’t payoff the entire balance, interest will start to kick in and that’s where you can get into trouble. If you are able to handle responsibly, it can be argued that credit cards should be used for every purchase you make.
Boosts Credit Score
If you have ever applied for a mortgage, loan, or even your credit card, you know that the credit score is the deciding factor in not only your approval in general, but what interest rate you get. The better the credit score you have, the lower the interest rate, which will save you money in the long run. By charging and paying on-time every month, while keeping your balance low, you can build up your credit score and strive for the best rate you can get.
You never know these days you can steal your information, whether it’s taking a picture of your card at the gas station or if you leave it out too long when paying a bill, pretty soon you could have charges all over town; it’s that quick. While you can dispute charges with a debit card as well, but the problem is the funds were already removed from your bank account from your debit card so you have to wait for the funds to be returned to you. With a credit card, the moment you dispute, the charges will go into pending status and you will not be responsible for paying.
Your debit card is accepted probably everywhere as well, but the difference is that when you use your debit to try and book a hotel room or rent a car, they can put a significant hold on your card for damages, that may not be released for a week or two afterwards. Much like disputing, a credit card will have the hold released and you will not be responsible for paying by the due date anyways. For easy tracking, it’s probably easier just to use credit.
The Rewards Add Up
Probably the best reason to use a credit card for every purchase is based on the rewards. By even spending what you would normally be buying in the first place, you can earn points or even cashback, that depending how much you spend, could add up to hundreds of dollars a year that would otherwise be ignored. Just be careful not to continue to charge extra items when you see the rewards start to add up, otherwise if your carryover a balance, the interest you’re paying would likely wipeout any rewards you were earning anyways, to its better to receive that free money.