There’s a common misconception that you should avoid credit cards at all costs, and it’s time to debunk this sentiment. Besides the fact that credit cards are necessary for building credit, there are plenty of other reasons why you might want to start using your credit card more often. As long as you use your credit card responsibly, there’s nothing wrong with using one!
Credit cards aren’t just reserved for big purchases, and using your card more often offers more benefits than just using your standard debit card. So if you aren’t convinced that credit cards aren’t all bad, here are four reasons why you should use a credit card over your debit:
1. Rewards
Most credit card companies offer unique rewards or cash-back programs for cardholders. For example, you can earn free flights, meals, gas, and more just by swiping your credit card for your day-to-day purchases. Rates of 3-5% cashback might sound low, but you’d be surprised at how much you can rack up in points or cash!
2. Purchase protection
If you’ve ever dealt with fraud or identity theft, you know it’s a nightmare that all should avoid. Thankfully, credit card companies have policies that protect customers from damage, theft, or loss. Who wouldn’t want all their purchases insured?
3. Sign-up Bonuses
Credit card companies offer bonuses up to $500 in value for new credit cardholders! You could earn checks, travel, gift cards, and more for signing up with a new credit card company. So do your research when choosing a new card! In contrast, banks don’t offer you anything for getting a debit card when you open up a checking account.
4. Grace periods
When you swipe your debit card, the money immediately comes out of your bank account. But when you use a credit card, your money stays in your account until you pay your credit card bill. Grace periods give you more time to cancel a purchase or earn some money if you have an interest-earning checking account.
So rest assured the next time you swipe your credit card and know that you’re helping yourself build a better financial future!
