Smart Uses for Credit Cards

What's Hot


Shoppers Boycott Businesses Selling Trump-Branded ProductsBusiness

5 Reasons to Shop for a Home in DecemberFamily

Giving Thanks: Why Foreigners Find America AmazingAround The House

Why Washing Your Turkey Can Make You IllFamily

50 Best Gifts Under $25 for Everyone on Your ListFamily

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

What the Richest 1 Percent Earns in Every StateFamily

10 Ways to Retire Earlier Than Friends on the Same SalaryGrow

The 10 Best Ways to Blow Your MoneyCredit & Debt

7 Foods That Can Lengthen Your LifeFamily

The 50 Hottest Toys of the Past 50 YearsFamily

7 Government Freebies You Can Get TodayFamily

There are a few situations where using your credit card has some distinct advantages over paying with cash.

There are a few situations where using your credit card has some distinct advantages over paying with cash. For example, there’s protection in plastic when you make big purchases, like a TV. If your purchase was damaged or defective, you can always withhold payment while you and your credit card company work with the vendor to resolve the issue.

That same buyer’s protection” is also why you should make your credit card the only way you ever shop online. Ditto if you’re using automatic bill pay, where a utility or other company automatically deducts money from your checking account… see if you can switch it to your credit card.

Some credit cards also offer extended warranties on purchases, so if you’ve got it, use it, especially for big buys. Then you can comfortably say “no” when the salesman tries to push an extended warranty plan on you. Find a credit card with warranty protection.

There are even credit cards that automatically categorize your purchases on your billing statements. Knowing where your money goes is a huge advantage when trying to stick to a budget.

And reward programs offer some incentives to shoppers, allowing you to rack up rebates or purchase points towards other items. Just remember that the rewards are only worth a fraction of the money you’ll owe in interest payments if you can’t pay the bill on time. So, they’re a nice bonus, but don’t rush out and buy something you can’t afford simply because of a “double points” or other such promotion.

But the smartest use of credit cards may simply be to help build a good credit rating. Your credit score can get you lower rates when you borrow, help you get a better mortgage, and maybe even a better deal on a things like auto and life insurance. Estimate your current credit score without paying anything to anyone. Just be sure you make a few small purchases every month on your card, and always pay on time.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 7 Simple, Free Moves Guaranteed to Make You Richer

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,738 more deals!