4 Reasons to Pay with a Credit Card
*Note: This is an old IG post originally posted in June, 2021.
When paid off and used responsibly, credit cards are great financial tools!
Here are four reasons you might want to consider using a credit card to pay whether or not you are into travel hacking.
1) You get rewarded for money you already plan to spend
Many credit cards have some sort of reward incentive you get when you use them. Often you will see this in 1%-5% back in cashback, points, or airline miles for every dollar you spend. If you already plan to spend the money, why not get something back for it? Over time this can accrue to be worth hundreds of dollars in cashback or a free airline ticket.
2) They can help you track your expenses
Though not as obvious as running out of cash, credit card companies will track your purchases that you can view online and see on your monthly statement. Analyzing your spending over time can help you readjust your budget and spending habits.
3) They are more secure than carrying cash around
Carrying one or two go-to cards reduces the amount of cash you need to carry in your wallet. In the case it does get lost or stolen you can easily freeze and replace your cards. Your cash, however, you probably won’t get back. You’d probably have to worry more about getting a new ID than any sort of credit card fraud.
4) They can help build your credit score when used responsibly
By not missing a payment, paying off the entire balance in a timely manner, and never maxing your credit limit, you can build and maintain an excellent credit score and credit report. This will be very beneficial if you decide to take out a loan or mortgage or when applying for better, premium cards.
Conclusion
Credit cards are not bad. They are merely tools that can lead to both negative consequences and positive ones depending on how they are used. I personally use credit cards to pay for purchases when I can and suggest you do too!
