Credit Card Advantages

Public domain photo “Credit Card Illustration” by Melody Dobbs

Advantages of Credit Cards

Too often credit card companies are the ones who get money off of us and not the other way around. We have to be careful not to get too many credit cards, get the right credit cards, and pay our statement balance in full. So how can we play the credit card system to our advantage?

Choose the Right Credit Card

First, it’s a matter of choosing which credit cards are the best to take out. You can only use store credit cards in one place and don’t offer rewards outside of that store. You also run the risk of taking out too many store credit cards, which will hurt your credit. Choose two or three major credit cards that you can use worldwide.

Credit cards through your bank don’t offer as high a credit limit. That may be a good thing so you are less tempted to buy big things. Other cards may offer better deals and other perks. Look at the interest rate, any fees, and more before applying for a card. Avoid cards that have a high interest rate, annual fees, and other fees. Many credit card companies offer cards without an annual fee.

Credit Card Perks

As long as you pay your statement balance in full every month, you will never owe interest and your credit card may “pay” you. Choose cards that have perks that you are interested in. Anyone would be interested in 0% interest for a period of time. Look for cashback bonuses for credit cards. That’s the most useful in my opinion. Some credit cards let you personalize your rewards. If you travel often, look for bonus air miles. If you shop at one store often, choose a credit card that offers rewards with that retailor. Find what perks work for you.

Editors note: We just stayed at a Hyatt hotel for 7 nights in Orlando absolutely FREE using the signup bonus from Chase through the link below!


Cardholder Protections

Credit card companies give you better protection than debit cards do. Once the money is out of your bank account (from a debit card), you most likely won’t see it again. Your bank will not cover fraudulent charges, but many credit card companies will put a stop fraudulent charges and you won’t be responsible to pay for them. For example, someone stole my credit card info while I was delivering my baby at the hospital. My credit card company called me five days later when the person tried to make a large purchase for airplane tickets out of the country. The company took those fraudulent charges off my account without any hassle.

You can also remove a charge if a vendor charged you without delivering the services promised. You can report the charge as fraudulent and the credit card company will stop payment to the vendor. This works well when a company refuses to give you a refund. Use this option wisely and honestly. Otherwise, you are committing fraud.

Builds Your Credit Score

Responsibly using a few credit cards can build your credit score to buy a car or home. Keep it to only a few credit cards that you pay the statement balance off every month. This shows you are a responsible borrower for larger debts later on.

Now you know the benefits of having a credit card and you can use them to your advantage. Shop wisely and you can reap the rewards.

So what other advantages have you found using credit cards?

Eileen Davis (Guest Blogger)

Eileen Davis (Guest Blogger)

I'm a crazy redhead. I have three hyperactive boys and a wonderful husband. I earned my BA in English Language from BYU. I grew up in Southeastern Utah in the middle of nowhere. I now reside by a big lake in Utah.
Eileen Davis (Guest Blogger)

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