There are those who feel that credit cards should only be used in emergencies, or for certain special purchases. And then there are those who understand that using a credit card to cover your basic, everyday expenses is an extremely savvy way to handle your finances.

The reasons why using a credit card instead of cash has great benefits are many. There’s the fact that you can earn rewards for every dollar you spend; frequent flyer miles, hotel loyalty points, cash back, gift cards, and more. Then there’s the convenience of using a card instead of writing a check, finding a stamp, and mailing your bills at the post office. And never mind the hassle of carrying cash, which can easily be misplaced. But there’s another great perk to using a credit card to pay for as many things as you possible can, rather than any other method of payment. And you may not even be aware of it.

The Unexpected Perk Of Using Your Credit Card For Everyday Expenses

Most credit cards offer a host of tools in their online account centers; tools which can make your financial life much easier. These including spending analysis, paydown calculators, interest rate calculators, and more. When you put most of your expenses on your credit card, you will create a snapshot of your spending that will show you exactly where your money is going.

More spending, more data

Each time you use your credit card, the charge is categorized according to the merchant type. Groceries, utility bills, restaurants, movies, apparel, and other categories will all appear on your statement. Many credit card issuers will show you your spending data per month, divided into a handy pie chart that illustrates how much you are spending, and where. Many also offer a year-end spending analysis, which you can download and examine to see whether your spending is lining up with your budget.

If you’re carrying a balance, these online tools can tell you how much interest you’re paying, how long it will take you to pay off your balance according to how much you pay each month, and if you could benefit from doing a balance transfer.

The more of your spending you do with your credit card, the more accurate these spending reports will be, and the more you can get out of the financial tools offered by your credit card issuer. So log on today and see what you might be missing out on.

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