Why Is It Good To Use Credit Cards To Pay For Credit Card Purchases Every Day
In many ways, we live in a cashless society. Managing credit cards can be a bit tricky. Most credit cards have high interest rates and all kinds of tricks so that you end up spending way more than you should. However, these little plastic cards are not all bad. Your credit cards can work for you if you allow them too. Use everyday credit card purchases to build your credit, earn perks, and keep track of your spending.
Using Credit Cards Every Day for Credit Card Purchases
You can use your cards to pay for just about all of your purchases throughout the month. At the end of the month, make sure to pay off all your credit card purchases in full. By doing this, you will carry no debt forward, and you won’t have to pay any interest charges either. But, best of all, you can get rewards from your credit card purchases. While you never want to make purchases just to get rewards, you can use them for your everyday needs. Did you know that it’s possible to use your credit card for every day and come out ahead?
Earn credit card Rewards by using your credit cards every day
Just about every business in the United States takes credit cards. You can pay for prescriptions, rent, the morning coffee, or your electric bill this way. Paying bills using credit cards is a fast way to earn credit card rewards. Think of the rewards that you would get just from your rent alone? Did you know that paying your rent, just one year on your credit card, can be enough to get you an airline ticket anywhere in this country? The credit card perks program of most credit cards cannot be beat! Those credit card purchases really can work for you.
Groceries and gas are recurring expenses. Think of how many times you gas up in a month. All of these little expenses can help you gain some big rewards. Many retailers like Sears offer store credit cards that earn rewards. Did you know that it is possible to earn more than $1,000 a year just by using credit card purchases to buy things that you need anyway? Using credit cards is not always risky.
Manage and Keep Track of Your Cash Flow by Using Your Credit Cards
Credit cards allow you to manage your cash flow. Some people are more eager to spend cash when they carry it on their person. However, with a charge card, you have a quick balance sheet that tells you how much your limit is and how much you have spent. You can access this at any time or place. Since you have a record of all your spending, it is easy to see where your money is going. Use credit card alerts to further monitor spending. Using credit cards gives you a paper trail to your spending.
Carrying Credit Cards Is safer than carrying cash
What if you were robbed while carrying a pocket full of cash? The chances are that you will never see that money again. Now, if you were carrying a credit card, then you can put a stop pay on that card immediately. The moment you stop that credit card, you are not responsible for any charges that have occurred. Also, they will block the number so that no one else can use your account, and they will send you a new card. You are backed by an insurance protection program when you use your credit card. It is much safer than cash, and nothing could be easier than making credit card purchases. You don’t have to worry about making change or not having enough cash.
Using Credit Cards Without Going Into Debt
Using credit cards is a great tool to help increase your credit score. Many people get into trouble with their cards because they have limits that they cannot manage, and they cannot resist impulse buys. However, regular use of a credit card, and paying it off on time, helps build a positive credit rating. Contrary to popular belief, you don’t have to carry a balance on your credit card to get the benefits from it.
Unless you have extenuating circumstances, there should never be a balance carried forward on your credit card. High-interest rates destroy the benefits of using credit cards. Paying off your card in full and on time is the way to properly manage credit cards. There will be times when you will need to carry your balance forward. Just make sure that it never exceeds more than 30 percent of the available credit on your card. Anything over 30 percent will hurt your debt utilization and lower your credit score. All you need to impact your score is to use the card one time a month, and you must pay it back your credit card purchases before the end of the billing cycle.
How Not to Go Into Debt With Credit Cards
If you go into debt from using credit cards, all the benefits mentioned above would be moot. Credit cards are only worthwhile when the balance is paid in full each month. Here are some tips to ensure that your card never carries a balance:
Enroll In Auto Pay
One of the first things that you should do when you get a new credit card is set it up on auto pay. Linking your checking account to your credit card makes it easy to ensure that your credit card purchases are paid in full each month.
Track Your Spending
Using a money management program like Mint will help you categorized your credit card purchases. Go back and look at the last month’s spending records, it will help you put things into perspective. A program like this will also allow you to look at averages. It categorizes things into 3, 6, and 12 months. Staying on top of your spending behaviors, even though you have limitless access to credit, helps you to live within your means.
Keeping Cash For Emergencies
What if the credit card machine is down at the grocery store? What if your car is on empty and their credit card reader is acting up? You need to have some cash in an emergency fund for moments when a credit card won’t work. Better yet, what if you lose your credit card? Cash does have some benefits. Credit cards are wonderful tools to build your credit, but they do not totally replace the need for cash. Remember, the less cash you carry the better, but having some on hand is wise.
Are Credit Cards Good or Evil?
There is a great debate on whether credit cards are good or evil? Some people will tout that credit cards are evil and a good way to go into crippling debt. Honestly, credit cards are somewhere in the middle. For those who can control themselves and are good at managing their money, using credit cards is an awesome way to improve your credit score, managing your money, and give you rewards. If you cannot control your spending, then having a credit card can get you in major trouble. Done right, your credit cards can be the ticket to a great financial future. You will never pay a penny in interest and have the convenience of paying with a quick swipe.
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