A credit card being used for good.

Ways To Use A Credit Card For Your Benefit

With all this talk about how bad credit cards are, you might be tempted to just cut all your cards in half. Don’t! Surprisingly, there are a number of ways that credit cards can benefit you financially. Take a look at some situations where using the plastic is actually a good idea.

Credit cards are a blessing and a curse. They can be used to purchase a wide range of things, but the downside is that these purchases can be difficult to pay back.

If you use your credit cards smartly though, they can really do you some good. Here are some instances where a credit card can be a good thing.

1. You have a credit card with no annual fee and 0% interest.

There are a number of credit cards that offer 0% interest for up to 18 months, meaning you can avoid paying interest for up to a year and a half. This is an amazing deal, as it means you get to save money on your purchase and avoid interest.

By putting off the payment for a purchase, you can use that money for an investment or to pay down other more expensive debt. Just be sure to pay off the card balance before it starts costing you interest.

2. You use your credit card for all your daily expenses.

Thanks to the convenience of credit cards, people save a lot of time. Cards are accepted at most locations and they offer more rewards than cash. If you’ve been using your card for all your expenses, you can save yourself a lot of effort. You also save some money over using cash. When you use cash, that change is usually lost. It ends up in your pocket, in the ash tray of your car or simply thrown out. A few cents here and a few cents there will really add up.

3. You pay off your credit card balance in full each month.

When you pay off your credit card balance each month, it helps you save money because you never pay interest. The grace period allows you to take advantage of the convenience of a credit card without the cost.

4. You need to track your expenses.

Credit cards are great for tracking expenses, especially over using cash. When you get your statement each month, you can see just where you have been spending your money. You can then make changes, if necessary, to use your money more efficiently.

5. You use your card as an emergency fund.

Credit cards are a great way to have an emergency fund if you lack savings. All that you need is the discipline to not use it for frivolous purchases and you will always have money on hand to handle something unexpected. It is a much better option than a high interest emergency or payday loan.

6. You use cash back to get out of debt.

When you purchase something with your credit card, you can often get a cash back for as much as 5 percent of the purchase price. Use your credit card for the purchases that you would already make and save the cash to pay it off when the statement comes. Then, cash out your cash back rewards and use this money to pay down your debt.

7. You use your card for discounts.

Credit card companies often give you an incentive to use your card in the form of discounts off of purchases. Take advantage of the discounts but pay your card off when you get the statement and you come out way ahead. Just be careful of the potential pitfall of carrying a balance.

8. You use your card in risky situations.

Credit cards are great in risky situations because they come with a lot of fraud protections. Sure, the debit card that is tied to your checking comes with any of the same features, but it is also tied to all of your money. A stolen credit card number is easier to recover from than a stolen debit card number.

What are Some of the Best Uses for Your Credit Cards?

Credit cards are a great tool for carrying out everyday transactions. You can use them to purchase items online and in-store, pay bills, and even make ATM withdrawals. It is important to know what the best uses for your credit cards are so that you can maximize your benefits.

There are many ways that you can use your credit card for the betterment of your life, but you need to be careful.

Many of the benefits that you get from credit cards are actually incentives from the credit card companies. They are not handing you 250 dollars cash back just to be nice. The real goal is to get you to use your card for purchases and then carry a balance. It is a trick that obviously works because credit card companies are still giving out lucrative bonuses in the form of airline miles, discounts and rebate.

In short, use your card for the benefits but be careful. Never make a purchase on a credit card that you do not have the cash to cover. This will ensure that you can always pay the card off completely when the statement comes.

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James Car is a finance, loan and budget expert based in the United States. After attending Brookhaven college, he went on to become a successful entrepreneur. He now enjoys writing articles that help people save and make the most of their money.