There are many perks that comes with using a credit card. For one, it makes shopping much easier and you can also build up your credit score as well. Additionally, you can save money on transactions and have extra protections placed on your card as well. However, keep in mind that your credit score and credit history can also be damaged if you don’t take proper care of it.
But, this shouldn’t stop you from using your credit card more often. Read below for more reasons as to why you should use your credit card more often.
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Using Your Card Will Build Credit
That’s right! When you use your credit card, you’re improving your credit score that’s based off of many factors. These factors include: repayment history, length of credit history, and how you use your credit. Additionally, this also includes how responsible you are when you use your card as well. The more responsible you are the better your credit score is.
In other words, do you pay your bills on time, do you use a small about of your available credit, has your credit card been opened for a while? Answering yes to most of these questions means you’re on the right track.
Possibilities of Getting a Welcome Bonus
When you first open a new credit card, there’s a high chance of you getting a sign-up bonus with it! Many card companies will offer welcome bonuses to new credit card users that ranges from cash bonuses to rewards points.
Just do your research and see if the card you’re thinking about opening comes with this kind of bonus or not. For example, the PenFed Gold Visa Credit Card comes with a $100 statement credit for new users. They just have to meet all of the cards requirements before the bonus is deposited into the checking account.
Build Up Rewards Points & Earn Cash Back
Going off of what I mentioned above, you can earn rewards points for making transactions with your credit card. Lots of credit card companies will offer welcome bonuses that will give you a specific amount of rewards points for specific purchases. Additionally, these points can be used towards: travel, gift cards, merchandise, or grocery expenses. However, keep in mind it will all depend on the type of card you sign up for.
Using a cash-back credit card will help you save money on each transaction you make. This will depend on the percentage the card allows, it also depend on what category you choose to spend in. Furthermore, other cash-back cards will give you a fixed amount towards other transactions you make.
Dishonest Vendors & Fraud Protection
Making accidental fraud transactions with your credit card can be removed easily. Unfortunately, with a debit card it’s a little more difficult to do. With a credit card, you’ll be able to make these purchases knowing that you won’t run out of money just in case it does happen. However, I recommend trying to avoid these transactions as much as possible even if you are using a credit card.
With that in mind, try staying away from paying for services such as: auto repairs, home improvement work, etc with a credit card. So if something bad happens, you’ll be able to dispute this and have your money given back to you.
Track Your Expenses & Extra Time to Pay
Tracking your expenses can be somewhat difficult if you’re one to make lots of purchases with cash. However, when you use your credit card to make these transactions, you’ll be able to have an overview of what you’re spending much easier. Keep an eye of your cash flow and see what you might have to improve your spending habits on.
Whenever you find it difficult to pay your bills on time, you can opt for changing the due date of your bills. When you use a credit card to pay, it will let your money build up interest-bearing accounts like high-interest savings.
Save on Interest and Protected Transactions
Moving debt towards a balance-transfer card with a 0% APY rate, you’ll be able to save more towards interest payments. Be sure to pay any debt you have before the introductory period is over. This is when the interest rate will increase, and you’ll end up paying more if you don’t pay your debt beforehand.
Additionally, your transactions will be protected when you use a credit card as well. It will also have reimbursement for transactions that have errors or were stolen.
Conclusion
Overall, these are just a few reasons as to why you should use your credit card more often. There are plenty other perks that comes with using it much more. Additionally, with these perks, you will also save lots of money towards your favorite retailers, have protection, and get welcome bonuses as well.
