In a good way...
There isn't a single purchase I make that doesn't get put directly on my credit card. I never carry cash, and my debit card hasn't seen the light of day since it got mailed to me.
You may have been taught that this type of credit card usage is risky and irresponsible. That comes because growing up as Millenials, our parents taught us that the credit card was only for emergencies, and debt is a thing to be feared.
Well, if you are an irresponsible person and cannot stop yourself from maxing out your card without being able to pay it off every month, then your parents are correct. If you have self-control and a healthy understanding of how to manage your debt, then a credit card can actually help you save money and growth your savings. Here's how:
Points Are A Girl's Best Friend
I'll take diamonds too though...
One of my biggest reasons for paying by card is the points I earn on every purchase. These points can be used to save money on other things like airfare, hotels, gift cards, money off your statement, even cash back into your checking account. So by spending money, you are earning money you wouldn't have if you used cash or a debit card.
But there is a catch...
Spending on your credit card can also cause you to pay interest. But only if you do not pay off your balance immediately every month. If you are diligent about your payments, and pay the balance in full, every single month without fail, you will gain these points and dollars, rather than lose money.
You should be diligent about the type of cards you choose and read what the benefits are for each. Some offer more points for certain types of spending, (3x on restaurants, 2x on gas, etc) Some offer certain benefits annual or when you spend the points ($300 to spend on travel, 3X the points when you spend it at a certain chain of hotels. And you also need to be diligent about the annual fees. Some cards can be free, while others can charge north of $350 a year. Make sure the benefits are worth the fee.
A dollar you have today, is more valuable than a dollar you have in the future (9 times out of 10)
The other reason I always use a credit card, is to allow my savings account to grow. For accounts with daily compounding interest, every day I leave a dollar in the account, the more money I earn. So if I have the luxury of differring a payment until the end of the month with a credit card, rather than it immediately leaving my account with a debit card, I can earn more dollars.
There are plenty more reasons to consistently use a credit card, like convenience, cultivating a good credit score, or having the assurance you can cancel a payment if you are mis-charged or defrauded, but these two I mentioned above are the biggest reasons my credit card is always my go to form of payment.
*This is not intended to be financial advice. Do not open a credit account without first understanding the terms associated*
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