It’s awfully simplistic to say that credit cards are good or credit cards are bad.
They are a tool and, like many tools, can either be used properly or not.
A hammer can build a house or break a window, and credit cards are no different. Used wisely, they offer some genuinely compelling advantages.
Here are 7 reasons to use a credit card.
Easy to Track
It is really easy to track your spending.
It’s all there on your account so you can clearly see where, when, and exactly how much you spent.
This is great for budgeting and knowing how you spend your money, but in a large household, it’s also great for knowing WHO spent the money.
No more “who bought $47 worth of snacks at Target?” mysteries.
Many cards even categorize your spending automatically, so you can see at a glance that, yes, you really do spend that much on coffee.
Automation
You can set your bills to auto-pay so you’re never late and never have your services switched off.
Most of us don’t have time to manually manage every bill, and our busy lives mean we can sometimes forget.
Having everything automated means you don’t forget, you don’t pay late, and you don’t get hit with those annoying late fees that feel like a punishment for simply being a functioning adult with too much on your plate.
Returns
Making returns with a credit card is remarkably easy.
Often, you don’t even need a receipt because the purchase is right there on your statement, including the date, store, and amount.
This is great if you are like me and often lose small pieces of paper, or have a purse that is, well, slightly cluttered. Some cards even offer extended return protection beyond what the store allows.
Safety
If you lose a wad of cash, then you lost it. It’s gone, and no one is coming to give it back.
If you lose a credit card, you can cancel it in minutes, get a new one sent to your door, and carry on with your life. Zero dollars lost.
Fraud Protection
If you have fraudulent activity on your card, you can dispute it and get the money back. It’s your legal right under federal law.
If you’re scammed with cash, that money is almost certainly gone forever.
Even debit cards offer significantly less protection than credit cards because with a debit card, the money leaves your bank account immediately.
With a credit card, you’re disputing a charge that hasn’t truly settled yet, which puts you in a much stronger position.
Perks
Many credit cards offer cashback, airline miles, hotel points, or other perks that can genuinely make life nicer.
Sites like DansDeals have built entire communities around maximizing credit card rewards, and people are getting free flights, hotel stays, and hundreds of dollars back per year just by using their cards strategically for everyday purchases.
Hygiene
This one doesn’t get talked about enough.
Cash is passed from hand to hand constantly and is notoriously difficult to clean. Studies have found all kinds of bacteria on paper bills.
A credit card, on the other hand, typically stays in your own wallet, is rarely handed to anyone else, and is quick and easy to wipe down. In a post-pandemic world, that’s not a small thing.
