It might be scary to think about using a credit card for every purchase, especially if you have issues with overspending, then certainly you won’t be doing yourself any favors when it comes to wracking up the balance every month, but it can actually made financial sense to use a credit card for every purchase you make. If you do find yourself going over what you can afford, take a look at last month’s credit card statement and go line by line to see where every dollar is going, that way you can hone in on reducing impulse and unnecessary purchases.
Builds Up Your Credit
You know if you’ve ever applied for a mortgage, loan, or even your current credit card, not only does your credit score decide whether you’re approved or not, but what your interest rate is. The higher the credit score, the lower the interest rate, and the more money you save every month. By making on-time payments, not carrying over a balance each month, and not filling out too many credit applications, you can see your score continue to climb so you can take advantage of the best interest rates on the market.
Protect Your Bank Account
While sure, debit cards are also accepted everywhere as well, but by using a credit card for all purchases you can project your bank account from fraud. These days you never who could have access to your credit information by snapping a picture of your credit card while swiping at the gas pump or leaving your card out too long when you’re paying the bill. If that happened with a debit card, any charges would be erased from your bank account until you were able to get the money back, if you will, but with a credit card you can easily dispute the charges and they will stay in ‘pending’ until resolved and you will not have to worry about paying for them.
Easy to Track Purchases
By using one card and eliminating using cash, you can easily track purchases by looking at one account statement. From there you can go line by line to see exactly where every dollar is going and start to put together a budget of what you are currently spending in each area from bills, food, gas, entertainment, and where you need to get to, in order to see the savings, add up.
The best reason to use a credit card for every purchase is for the rewards. By making purchases on your account you can earn points to redeem as hotel rooms, gift cards, or airline miles, or even cashback, that depending on how much you spend, could add up to hundreds of dollars every year. It can be easy to see the rewards add up and want to spend more, but if you can stick to the essentials, you can earn free money on the purchases that you were going to make anyways, that otherwise would have been missed by using another credit card or your debit card.