“I don’t need a credit card when I can use my debit card,” was the conversation I overheard the other day when I was in the store with my husband. I get it. I know that it’s so easy to just use a debit card for everything. Additionally, so many people are use the cash and envelope system these days that it seems that no one is using their credit card anymore. The problem is that not using your credit card is actually causing you to miss out on some free stuff, and no one wants to miss out on free stuff.
It’s easy to just skip the credit card and not even worry about debt and payments and things of that nature. So many people feel that credit card are the devil in terms of debt. They put you into debt. They put you into a poor financial situation. The truth of the matter is that credit cards have nothing at all to do with that. You are the actual problem. If you find that you cannot use your credit card wisely, then don’t use it. However, if you are a smart spender and you’re not worried about going into debt, you might want to use your credit card. You’re missing out on some free stuff that we know you might not want to miss out on.
Not sure how paying cash is preventing you from getting free stuff? Read on to find out.
Do you have a cash back credit card? If you’re not using it, you’re not earning cash back. If you pay your expenses and purchases off in full each month with the money you’re currently using to buy it all, you can earn some serious cash back. I have a friend who does this all year and earns thousands back to spend at Christmas. How do you not want that?
Do you have a travel credit card? If you do, you are missing out on free flights, free nights in hotels, free upgrades, free Wi-Fi, free perks and so much more. Your travel card can offer you free checked luggage on airlines, free reward nights, free nights on your anniversary and so much more. Travel is not cheap, so you definitely want to spend as much time as you can earning free travel anywhere you possibly can with your travel credit card.
Better Interest Rates
Those don’t come free, you know. If you never use your credit cards and you don’t own a home or a car with a payment, you might be hindering yourself from earning a low interest rate to one day buy a home or get a loan. You definitely do not want to find that you cannot do either, so it’s time for you to look into what you are doing and use your credit card. When you use it wisely, you can build your credit and get much better rates on anything that you want to purchase.
Back on Thanksgiving weekend, my best friend and I went shopping for Christmas gifts. She bought herself a new flat-screen television for her porch, and she almost paid for insurance on it when the cashier asked her if she’s liked a warranty. She said yes, and I said no. Then I explained to her that I have the same card she has and it offers extended warranties on items such as televisions. She didn’t know that, so she almost bought it on her own.
Did you know your credit card offers a number of warranties on purchases? It does, and it’s something you might want to consider when you take out that debit card to make a purchase when you’re out shopping. Use your credit card and save money on warranties and insurance and things that are already offered by the card.
Your Own Money
Anytime you use a credit card to put down on a rental car or hotel room, those locations hold the full amount of your purchase on top of a standard daily fee during your stay or rental. That can cause your money to become tied up in the bank. For example, one hotel we stayed in while in New York held $100 per day on my debit card when we checked in and realized we left our credit cards at home. That was a 3 night stay that tied up the $1,200 we paid for the room and another $300 for a hold. That’s a lot of money to be unavailable in your bank account simply because you don’t want to pay for things with a credit card.
I’m a huge victim of things such as my card becoming compromised. When my debit card is compromised, I have to cancel it right away without anyone using it first. If someone uses it first, I might not get my money back. When that happens with a credit card, I’m protected and will not lose my funds.
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