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4 Benefits of Credit Cards and Why You Need to Use Yours More Often



Did you know that Americans carry an average of $6,194 in credit card debt? Despite this statistic, people use credit cards every day to make purchases.

This is because, although credit cards are dangerous in the wrong hands, they come with a lot of advantages. When used correctly, you can reap many benefits of credit cards.

Keep reading to learn four of them.

1. Improves Your Credit Score

One of the main benefits of credit cards is that they improve your credit score. This is why a lot of people sign up for credit cards in the first place.

However, if you don’t use your credit card responsibly, your credit score will decline much faster than it goes up.

Boost your credit score by repaying the amount of credit that you used on time and making use of the credit period. At the very least, always pay the minimum amount each month.

2. Expense Tracking

Owning and using a credit card allows you to track your expenses. You’ll receive a statement each month noting how much you spent and where. With this information, you’ll be able to plan for repayment without delay.

Carrying around cash and spending it all willy-nilly is hard to track. Plus, carrying a credit card vs. carrying a wad of cash is much more secure.

3. Earns You Rewards

Another one of the advantages of credit cards is that you have the chance to earn rewards. There are some credit cards that give you a percentage back for every dollar spent.

The rewards might come in the form of credits to pay off your credit card amount or miles to redeem for travel.

Some cards pay higher rewards if you spend money on specific categories, such as:

  • Groceries
  • Gas
  • Restaurants
  • Travel

You can also find cards that reward you for shopping at specific places like Target or Amazon. The best credit cards overall will earn you points and rewards when you use them.

Although rewards are very tempting, it’s recommended to only spend as much as you normally would. Overspending to get additional rewards is the quickest way to go into debt.

4. Grace Period

When you make a purchase on a credit card, the money in your checking account goes untouched until you pay your credit card bill. Your money is gone instantly when you make a purchase on your debit card.

Holding onto your debit card funds is helpful because it can save you money in the long run.

If you pay your bill from an interest-bearing debit account, you earn money during the grace period. This means that the purchase you would’ve made on your debit card turns out to be cheaper when you use your credit card.

Benefits of Credit Cards for Users to Know

If you are an avid credit card user, it’s important to know the many benefits of credit cards.

The convenience of credit cards makes them a popular option for everyone but they can also improve your credit score, help you track expenses, and earn you rewards. You have a grace period before you need to pay your bill.

Utilize your credit card responsibility to reap these benefits and come back for more money management tips on our blog.

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