With so many establishments using digital forms of payment these days, it makes sense that credit cards became a huge part of our everyday spending. With the rise of debit cards and mobile payment solutions such as PayPal, however, using credit cards for regular purchases has become something that occurs less often. For those who are financially responsible and always trustworthy, though, using credit cards for everyday purchases is a smart idea for a number of reasons. If you fall into this category, continue reading to find out why you should be using your credit cards for everything from gas to milk.
Rewards and Cashback
A few debit card companies offer limited rewards for use of debit cards, but it is not common and limited usually to select debit card promotions. With credit cards, though, you can easily obtain a card that provides anywhere from 1 to 5% cashback on everyday purchases – regardless of whether you pay off the charges the same month (which you’ll be doing). This may include groceries, cash advances and travel arrangements, so feel free to use your rewards cards for any and all purchases you would otherwise make with a debit card or cash.
When you travel constantly for business or pleasure, it is generally a good idea to have some assurance in the process. Many credit cards can offer you an array of protections such as roadside assistance, baggage insurance and trip-cancellation insurance as a result of using them at the time of purchase. You may have a card that can even provide roadside assistance coverage regardless of being on vacation or not, so it makes sense to keep these cards active for these situations. Concierge services are now also available with many credit card lines, helping you obtain valuable referral information, advice and service for various needs.
While all cards come with some form of protection against fraud and theft, credit cards have much more established systems in place for handling such affairs. You are far more likely to have your claim resolved (and in your favor) when using a credit card as opposed to a debit card. When using credit cards, any disputed amounts or charges will be credited to your account while the investigation is ongoing, while debit cards do not usually have the same result since the money has already left the account by the time the person notices.
Obviously a key benefit of credit cards is having more flexibility when it comes to spending. If you need to purchase something but will not have the money until next week, a credit card can allow you to make the purchase until the bill can be paid for the following week. For fiscally responsible adults, leveraging purchase power can be a real benefit and one that comes with no negative consequences when done so properly. By maintaining a strong credit score by paying your bills on time and never accruing unnecessary debt, this avenue of leveraging is always open and helpful for those with access.