5 Reasons You Should Be Using Your Credit Card More

Many people wrongly believe that there are benefits to using their credit card less. But that couldn’t be further from the truth. Using your credit card for your everyday expenses has tons of benefits. In this article, we’re going to touch on five reasons you should be using your credit card more often.

A Credit Card is a Great Credit Building Tool

You may not be aware of this, but credit bureaus love people with active credit card accounts, provided you make your payments on time of course. Every time you make successful payments each month, the payment will be reported to the credit bureaus. But be careful though, one missed payment could have a negative effect on your credit score.

Makes Budgeting and Accounting Easier

A credit card bill is like a clear ledger of the expenses you make every month. A credit card makes it easy for you to check where your money is going and where you can make adjustments. This is especially true if you own a business. It also makes calculating expenses for tax exemptions much easier.

No Need to Carry Cash

Constantly going to the ATM can be annoying, not to mention the over the top withdrawal fees many banks charge. And carrying less cash around is much more convenient too. It’s also much easier to spend money on the small stuff you don’t really need when you always have loose change to spare.

Automated Billing

Automated billing is much more efficient and convenient than having to pay each bill individually each month. Whether it’s your cable, internet, electricity or phone bill, adding it to your credit card is just a wiser decision. You’ll only have to worry about one bill per month: your credit card bill.

Take Advantage of Rewards

Lots of people think reward cards are not all they’re cracked up to be, but when you start using them for all your purchases, the benefits start adding up real fast. You can get rewards for everything from fancy dinners, to all round trips, and sports equipment, the list is virtually endless. And there are tons of cards to choose from, all with their own set of rewards. You can go on a site like Bankrate and compare reward cards to see which ones fit your needs the best.

Credit Cards Offer Tons of Protection and Free Services

Another great thing about credit cards is that they offer a variety of protection and services that most people wouldn’t think of paying for. Some credit cards offer things like a concierge service when you book hotel rooms. Purchase protection allows items that were bought with your card to be protected against accidental damage, theft or loss.

As you can see, using your credit card frequently has tons of benefits. It’s a great way to build credit, manage your budget, and eliminates the need to constantly carry cash around. Not to mention all the extra perks it offers. So next time you go out, consider using less paper and more plastic.

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