Here’s Why You Should Buy Everything With Credit Cards

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You have much to gain by going this route. 

Few things in life are more convenient than credit cards. They give you access to a line of credit that you can use to pay for your everyday purchases, and they’re accepted nearly everywhere these days. Plus, as you use your credit card and pay it off, you’re demonstrating to the card issuer that you can be trusted with credit. This builds your credit score, and having a good credit score can make it easier and cheaper to borrow money in more high-stakes situations, like getting a mortgage loan. With all these benefits in mind, here’s why it pays to use your credit card for as many of your expenses as possible.

The benefits of credit cards

It’s the features and perks of credit cards that make them ideal to pay for your groceries, gas, clothing purchases, utility bills, and beyond.

You can easily track your spending

You’re living on a budget, right? When it comes time to figure out how much you’re spending on different budget items every month, it’s very easy to log into your credit card account on your computer or in your mobile app and see all those costs. Some credit card mobile apps and websites will even helpfully categorize the spending for you — one of mine even creates a lovely pie chart showing where my money goes!

You can earn rewards

Some credit cards give you the chance to earn rewards on your spending in the form of cash back, points, or airline miles. Sometimes you’ll get a higher earnings rate on certain purchases, so if you’re comfortable juggling multiple credit cards, you can maximize your earnings by using the right card at the right time.

You can take advantage of security features

Credit cards are one of the most secure ways to pay. Your own money isn’t connected to them. With many credit cards, you’re not liable for fraudulent charges if your card is lost or stolen (and if you are, it’s generally for a small amount of money, like $50). The chip technology in a credit card keeps your data safe, and you can generally opt in for fraud alerts if your card issuer spots something fishy with your account.

A few exceptions

If you’re ready to start charging all your expenses on your credit card, take a quick breather and ask these questions first.

Will the fees involved supersede the rewards earned?

If you want to use your credit card to pay your electric bill, for example, check to see whether you’ll be assessed a processing fee for doing so. If your bill is $100, and the fee is $3, will you earn at least 3% back by using the credit card? You might also have a hard time paying your mortgage loan with a credit card, as you may need to use a third-party payment processor (and pay a fee). Any time it will cost you more to pay a bill with a credit card, it’s a good idea to use another payment method.

Will you be bumping against your credit limit?

You definitely don’t want to put yourself in a situation where you’re running up against your credit limit. Maxing out a credit card will do your credit score no favors. If you’re concerned about this, you might consider splitting your purchases and bills across multiple cards (provided you can keep up with multiple payments).

Will you have to carry a balance?

Finally, if you’re unable to pay off your balance in full every month, using a credit card for all your expenses will result in interest charges on the balance you carry forward. Credit card interest is not cheap — as of the fourth quarter of 2022, the average credit card had an APR of 19.07%. If you want credit cards to benefit you and your finances, you don’t want to owe an ever-growing balance on your cards month after month.

Credit cards can be a great way to make managing your everyday expenses easier and safer, and you get the chance to earn rewards on your spending to boot. Just be sure you’re paying off your cards in full every month and not spending more on your bills because of using a credit card.

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