There has been a lot of negativity about credit cards lately. As long as you pay off your credits cards monthly and keep away from negative balances they can be an awesome tool and can really help you financially.
My husband and I love to use credit cards to our advantage. We usually have between 5-8 credit cards at a time and have never run into any trouble. Below are some of the reasons why I am a huge fan of credit cards.
Building Credit
It is super important to build your credit score and your credit history. One of the main advantages of building your credit score is to qualify for lower interest rates on home mortgages and even car loans. The higher your credit score the lower your payment is going to be.
Staying off the grid and using a cash system or just debit cards might seem like a great idea until you have to qualify for a loan. You will probably find yourself in a bind.
Safety
Credit cards are so much more secure. Many credit cards provide lost luggage insurance, trip cancellation insurance, and more. Also, incase you experience any sort of credit card fraud many credit card companies only hold you responsible for the first $50 lost. Credit card companies are also great about notifying you if you have any suspicious purchases.
It is also great to have the peace of mind that if you get stuck somewhere or even if you miss your flight you can easily pay for a hotel room or rental car with your credit card.
Credit card companies are also great with warranties. When I was engaged I bought a wedding dress with my credit card and then when I took it home I noticed that it had stains all over it. I went to return it but the store said they had a no return policy. I returned the dress and the credit card company reimbursed me for the dress.
Perks
This is one of my favorite aspects of credit cards. I love a good deal. Many airline credit cards offer free roundtrip tickets after signing up for their credit card. Last year my husband and I signed up for the Southwest credit card and got 2 round trip tickets after paying the $79 annual fee. We ended up getting two tickets from Salt Lake City to Boston for just $79.
Many stores also have reward points. We have an Amazon credit card and make many of our purchases using that. The points add up and we have been able to get a lot of our purchases from Amazon for free.
Many bank cards have reward points as well. We have a Chase Freedom cards and the rewards change monthly. We get cash back on groceries, gas, restaurants, and more.
Organization
It is so easy to stay organized using credit cards. Gone are the days of writing down purchases on paper, entering them into an excel spreadsheet, or into your checkbook. We use Mint.com and we can see all of our credit card purchases and multiple bank accounts all in one website. This makes it super quick and easy to pay off all your cards without forgetting anything.
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Credit cards don't have to equal debt! As long as you are smart with your finances you can end up saving yourself a lot of time money by using credit cards. Just remember not to spend more than you have and treat your credit card just like a debit card.
I agree! We only have one credit card, but we earn rewards on it and knew we needed to start building up our credit! I put various expenses that we know to expect each month (power, internet, etc.) on it and a few other purchases throughout the month. I pay it off in full on the first of the month and it has been a really great experience! People just need to go into credit cards with the mindset that no matter which card they use (credit or debit) it is still coming out of their account!!
ReplyDeleteI love using my US Airways rewards card. I used it to pay for any wedding-related purchases (ebay, etsy, paypal, etc) and earned enough miles to pay for one of our flights to Mexico for our destination wedding! I also love Mint.com. I check it obsessively.
ReplyDeletelove the perks of it too. i have totally bought FREE Christmas and B-day gifts form my reward points from my cards. How are classes coming?
ReplyDeleteI put EVERYTHING on my credit card then pay the balance off at the end of the month. It was great that I was able to use miles from that card for our trip to St Maarten a couple weeks ago. $1000 plane ticket that I didn't have to pay for was amazing!
ReplyDeletecouldn't agree more! people are scared of them, but they are the best!
ReplyDeletePERKS PERKS PERKS! (aka- skymiles!)
xoxo
yes yes yes and yessss!!! I treat mine like a debit card and never spend more than I have. I can't think of any reason NOT to use a credit card haha.
ReplyDeleteI'm all for credit too! We have an Amazon & Chase Freedom card too (really loving the 15 months no interest at the moment) plus the $100 back we received after opening it. We don't always pay them off every month, but I try my best to pay way over the minimum due. They've come in really handy :)
ReplyDeleteI've always been so afraid of them, but they are so conveinent and we just never let the balance roll over. If you're smart they are super helpful. Great post!
ReplyDeleteI haven't yet been able to get a credit card--for the very reason of having no credit history. We originally thought we could get a joint card, but neither of Angel's credit cards would let us...and the several I have applied for turned me down because I've paid with cash my whole life and have never had a loan! I'm not a student either so I don't qualify for student cards--probably Angel needs to get a card with some company that will allow joint cards and then I can build up some credit history. He pays for most things on his card in order to rack up rewards points and get money back. We never carry a balance, we just use the card like cash--and I know I need to get one of my own!
ReplyDeleteI completely agree with every single one of these. I do believe credit cards could be dangerous if you don't have self control or no sense of managing money. But at the same time, they are SO CONVENIENT, handy, and do a ton of good for you! It was hard for me to start because I began with absolutely no credit. So, my limit was like $250! haha. But you have to start somewhere. And now,t hat is our BIGGEST way of building credit. Love this post! Thanks for posting it -- you little accountant wife :)
ReplyDeleteWe love getting rewards from our credit card! It's fine to have the a s long as you remember to pay it off every month! That's what we do.
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