Why You Could Use a Credit Card for ALL Purchases

No matter is lyft cheaper than uber, your credit card is on file and makes getting a ride to and from bars or the airport a lot easier, and safer, than driving yourself.  Being responsible with your transportation is a great start to better financial moves, but did you know that you can take your credit card a step further and actually use for all purchases?  While sure, there is risk involved if you are not able to pay back the full statement balance by the due date, tacking on interest, but if used correctly, credit cards can actually make solid financial sense.

Protection for Your Bank Account

These days you always hear about your card information being stolen, whether it was at the gas pump, or you left your card out too long when signing the check, the thieves are still out in full force so, while it may be out of your control, especially if a store was breached, you should take the best precaution you can, by using credit over debit.  If fraud occurs with a debit card, your bank account is at risk of being wiped out until the charges can be returned, but at least with credit, they will stay pending and you will not have to pay.

Don’t Have to Worry About Holds

While sure, debit and credit cards are accepted everywhere, but when using a debit card to say, check into a hotel room or pick up a rental car, there will be a large hold placed on the card, probably for hundreds of dollars, for damages, and may take a week or two to come off, losing that money in your bank account, but with a credit card, much like a disputed charge, will still pending until the hold is released, not putting you on the hook for the hold at any time.

Builds Up Your Credit Score

If you’ve applied for a mortgage, personal loan, credit card, or even for employment, you know that credit score matters, and the better the score you have, the more you can take advantage of the best interest rates on the market.  The higher the interest rate, the more money it will cost, so why not strive for the best credit score you can, and that comes with paying your bills on time, and paying off charges every month so that you don’t carry a balance and cause your credit utilization to increase.

The Rewards Add Up

Probably the best reason to use a credit card for all purchases is for the rewards.  By making the purchases you would have made anyways, you can earn points you can redeem for gift cards, or better yet, cashback.  Not taking advantage would be leaving free money on the table.  Just be careful not to charge up more than you can afford when you see the rewards start to add up, otherwise if you begin to be hit with interest, that can wipe out any potential money savings with the rewards.

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