5 Benefits of using Credit Cards | Using your credit cards as an advantage

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This post is all about the 5 reasons why using credit cards is actually beneficial.

Finance Gurus Generally Don’t Like Credit Cards

There are many financial gurus who have discontinued using credit cards. They do not believe in credit cards and pay for everything either in cash or with debit cards.

Especially when you’ve been through your debt-free-journey, many individuals, once out of their credit cards debts, forego using their credit cards altogether. This is because for them, credit cards are way too tempting!

Using cash definitely has its advantages for sure but using credit cards – wisely of course – can also have its advantages.

Here are 5 Reasons Why Using Credit Cards Is Actually Beneficial

1. It Keeps Track of Spending

Keeping track of expenses when using the credit card almost guarantees that you are not losing track of your spending. Having everything digitally tracked unlike with using cash, there is a certain comfort in knowing you will not accidentally forget to track any spending.

2. Cash Rewards

Cash rewards are great. You cannot get cash rewards if you are trying to do the all-cash method. Depending on what reward system your credit card is tied to, cash back rewards or travel points can add up and you can thus travel hack or simply get cash back which you can decide to put into savings.

3. It’s Handy

Now I know not everyone embraces a cashless society and by no means do I. I love having cash to spend but quite frankly, the more cash you have in your wallet, the more it can become somewhat difficult to manage it all. Credit cards are handy, which I understand, can also be tricky but if you know yourself and if you behave wisely with them, they are very handy. Especially when you are travelling.

4. Safety Factor

Credit cards are the most widely used method in paying for online purchases. Yes, you can use PayPal and even your debit card but credit cards are the most common way to purchase in the online world.

5. Online Shopping

Using a credit card on the other hand seems to be more safe in the sense that if anything goes wrong (someone illegally uses your card, ie. fraud), most credit card institutions will investigate and credit you the amount. If you carry a lot of cash with you, sometimes this can become somewhat of a safety hazard. When you lose it, the bank is not going to just credit you the amount. There is no insurance.

Final Note

Using credit cards is a common way to receive points or cash back. It is a relatively safe method of payment and hassle-free.

Whether you prefer the all-cash over credit card is ultimately up to each individual. When credit cards do not help you in your every day life and they become more of a burden than a blessing, maybe cash is the only way for you. On the other hand, if you can be responsible with credit cards, then the 5 benefits mentioned still give incentive to use credit cards.

This post is all about the 5 reasons why using credit cards is actually beneficial.

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What are 5 Benefits of Using Credit Cards