Studies show that nearly 80 percent of U.S. households use credit cards. Although credit cards come with the risk of overspending and incurring interest charges, they offer greater benefits over traditional payment methods. Shoppers are encouraged to use their credit cards responsibly to avoid overspending and incurring interest charges. Below are reasons why you should consider using credit cards instead of debit purchases:
With major credit cards such as MasterCard, American Express, Visa or Discover Card, you have access to all of your purchasing power. That means you do not have to withdraw cash from the bank or hurriedly scribble in a check book for you to make a purchase. Unlike traditional payment methods, Mypaymentsavvy, an online payment method do not have 24-hour charging limit; therefore, you can make purchases anytime. Nonetheless, you can use your debit card as a credit card by signing for a purchase instead of using your PIN number. As such, the lender usually covers the difference between the cost of your purchase and the amount of money in your account. Visit http://www.creditcards.com/credit-card-news/benefits-of-using-credit-cards-1267.php for more information.
You may use credit cards to track your expenses. They make it easier for you to budget your monthly expenses, especially if you pay your bill fully. Your bill serves as a master summary that displays an itemized list of your monthly purchases. Importantly, a credit card such as American Express categorizes your purchases and sends quarterly or annual expenditure reports. That way you can have a breakdown of how much you spent on food, entertainment, and clothes. Some cards even provide year-end reports that may be used for filing tax returns.
Unlike traditional payment methods, credit card purchases give a degree of theft protection. As protection against fraud advances, so do the methods used by the fraudsters. As a result, most credit card issuers offer a zero liability policy to protect you against unauthorized purchases made with your card. Interestingly, those with online accounts can notice fraudulent activity with their credit card before unauthorized purchases are done.
Credit cards allow you to earn valuable rewards for your purchases in the form of points, cash back or miles. The more you use a credit card, the more rewards you are likely to earn. While you usually incur interest charges for not paying your entire bill within a specified period, sometimes the card issuer may give you a break in the form of the float. According to https://www.discover.com/credit-cards/resources/credit-cards-vs-cash, the break may be from 25 to 30 days during which the card issuer will not charge interest on your purchases.
If you have not been using your credit card wisely, now you have more incentive to improve your habits. However, if you already use it responsibly, avoid using your debit card for anything other than ATM access. Benefits such as convenient shopping experience, easier record keeping, protection against fraud, and rewards await those who opt to responsibly use their credit cards instead of debit purchases.