5 Reasons You SHOULD Be Using Credit Cards

We have all heard the various reasons as to why you shouldn't use credit cards. It even seems hard to believe that there is a good reason to use them. In reality though, there are several good reasons to use credit cards. Whether you're looking for a discount, interest-free shopping for large purchases or just want to earn cash back, credit cards are a wonderful addition to any wallet. Here are just five reasons why you should use credit cards.

Savings

Gas stations, clothing stores and a variety of other companies often offer discounts to shoppers using the store's credit card. It may be 3 cents per gallon off your gas or 15% off your total purchase at your favorite clothing store. Either way, credit cards can save you money. You simply need to remember to pay the bill when it comes to avoid interest.

Special Promotions

Another great reason to take advantage of credit cards is interest-free promotions. Let's say you're in the market for a new refrigerator. You have great credit, but the bank still wants to charge 5% interest. However, Lowe's will allow you to purchase the appliance interest-free for 18 months. As long as you pay off the total by the end of the promotion period, you'll have saved hundreds of dollars.

Cash Back

Many people use credit cards to earn cash back on things they normally purchase, such as gas and groceries. In fact, some people buy everything on credit cards and pay off the balances at the end of the month. This means they don't pay interest, but still reap the benefits of getting cash back.

Security

If you go on vacation and your wallet is stolen, you will lose the cash you had on hand. However, if you opt to use credit cards, you will be able to quickly call the company and cancel the account before any purchases are made. Even if purchases are made, the company will refund those charges.

Emergencies

One last good reason to always have a credit card on you is for emergencies. Let's face it. We all don't have three-months salary socked away for life's little uh-oh moments. For example, your brakes may go out and you need them fixed right away. Instead of having to get a cash advance loan, you can charge the amount to a credit card that offers interest-free promotions.

Credit cards don't ruin credit, people do. In other words, credit cards are a great financial tool, but they need to be used responsibly. Pay off your balance before interest occurs, take advantage of special promotions and use your cards wisely.

About the Author: Elden Wohlgemuth loves writing about personal finance and credit repair. He also writes guides for students who are looking for grants for college and other educational funding sources.

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