18 Reasons Why You Should Be Using Your Credit Cards More

Your card can earn you cash back, rewards and more perks.

By Gabrielle Olya

For a piece of plastic, a credit card can be a very powerful thing. Not only does it make shopping seamless, but many credit cards also come with a number of perks, including ways to save money on purchases and added consumer protections. As long as you are a responsible credit card user without outstanding debt, there’s no reason why you shouldn’t use your credit card to pay for almost everything.

It Helps You Build Credit

Your credit score is based on a number of factors, including your repayment history, the length of your credit history and your credit utilization. Responsible credit card use — which includes making on-time payments, keeping credit cards open for long periods of time and only using a small percentage of your available credit — will help your credit score to rise.

You Might Be Able To Get a Sign-On Bonus

If you just opened a new credit card, making purchases with it can earn you a major sign-on bonus. This could be a cash bonus, extra rewards points or extra cash back. For example, the PenFed Gold Visa® Card gives new cardholders a $100 statement credit when they spend $1,500 within the first 90 days. If you normally spend that much, it can be worth considering this card to get the statement credit.

It Protects You From Fraud

Fraudulent purchases made with your credit card can be easily disputed. Things aren’t so seamless with debit cards when the money is taken from your account and must be recovered. Using credit cards can give you that extra peace of mind from knowing that you won’t be out any money in the case of theft or fraud.

You Can Rack Up Reward Points

Why not get rewarded for the purchases you would be making anyway? Many credit cards allow you to earn reward points for every dollar you spend, which can then be redeemed for travel rewards, gift cards, merchandise and more, depending on the card.

They Make It Easy To Track Your Spending

It’s hard to keep track of payments you make in cash, but when you pay for purchases with a credit card, it’s very easy to see how much you are spending on what. This can help you to easily track your cash flow and see areas where you might be spending too much.

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