Credit cards have received a bad reputation because of the high credit balances that many are struggling to pay off. However, if you do not feel the urge to make unnecessary big purchases, then a credit card is for you. The whole point, from the standpoint of the consumer, is to not rack up debt since the interest rates are predatory. Using credit cards mindfully as if it is your cash and only buying the things you normally buy can have advantages.
- Points/rewards. However, you want to look at it. Some have great programs, and it can be easy to get into credit card churning. This is where you sign up for a credit card, get the bonuses and then stop using it and move on to the next one. Might as well get paid for what you are going to purchase anyway.
- Keeps your cash safe. If you use your credit card at a location that puts a hold on your card, you do not have to worry about the cash in your account being held up.
- Safer from fraud. Your liability for fraud is reduced and the credit card company will work with you. In the same measure, it keeps your cash safe. If a scammer charges on your debit card, it holds up the process of getting your cash back from the bank. It’s generally less stressful to have to deal with fraud on a credit card because it is not technically ‘your’ money.
What do you think? Is there another reason you use credit cards or don’t?