We always hear about how we're not supposed to put things on our credit cards. We keep hearing on the news about the enormous amount of debt that millions of Americans are in right now. One of the reasons that Americans are in so much debt is because of out of control spending. But is their debt the fault of the credit cards themselves or rather is it from a lack of self control?
In this article I will discuss five reasons why I believe it's actually a good idea to use your credit card regularly. Remember though that you must not charge more on your card than you can pay off that month. Think of a credit card as a debit card. Remember that it's your own money that you're spending each time you swipe that card, not the banks' money. Without further ado, here are five reasons why you should use your credit card regularly.
1. Credit score. Whether we like it or not, the credit score system relies heavily on credit card usage. If you have a credit card with a long history, you have established credit. Nobody will lend you money unless you have a history of using credit in the past. The longer you have that credit card account the better. Always make your payments on time and you'll not only avoid late fees, but your credit score will increase. So if you want to establish credit and increase your credit score, use your credit card and pay off the balance each month.
2. Security. When you buy something with a credit card, it comes built in with consumer protection on your purchases. This means that if you buy something on your Visa online and you never receive the product you ordered, you can do a chargeback on your card and get your money back. If you abuse this feature you risk getting your card canceled, so only use it when absolutely necessary.
3. Tracking. You can really manage your spending real well with a credit card. Make it a habit to put everything on your credit card. By doing this, you will be able to monitor all of your purchases, which will show up in your monthly statement. You can also log in to your account at your credit card company website to easily track your expenses. Doing this is good because you can establish a budget since you'll know how much you earn and how much you spend.
4. Rewards. Use a credit card with some form of rewards program. This means that for every single purchase you make you will earn points on your account. These points can then be redeemed later for things like gift cards to your favorite restaurant or store. Some credit cards have a rewards program which give you free gas or airline tickets.
5. Access. No matter where you are in the world your credit card will be accepted. You don't have to worry about having local currency when you own a credit card. So whether you're doing shopping at the local grocery store or you're thousands of miles away on an island getaway, your card will work.
Author Resource:
Edwin is a master internet entrepreneur and expert financial expert who has written extensively on personal finance issues on his highly successful financial blog: Cash The Checks .
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