As long as you can use a credit card responsibly, there are many benefits of using a credit card. They provide rewards, protection, convenience. Why use credit cards? Other payment choices, such as debit cards and cash, can look like a simple way to stay within budget.

Credit cards have a reputation to encourage holders to spend money they do not have particularly when enticing offers come in the mail. But we think a better credit card is a must-have. When used responsibly, credit cards are the best for your financial well-being. Smart credit cardholders can earn money by using their card.

Best credit rating
Purchasing things with your credit card and then paying them off every month will help you build credit. It’ll either help you establish a good credit score from the beginning and rebuild a better credit score if you have had issues in the past. Ensure you are spending within the limit and can afford to pay the bill off in full every month so the interest does not add up and make the bill exponentially larger.

Fast and easy
No more hunting for precise change. Credit cards make checkout simple. Swipe your card, sign your name, and you are done. Now with smartphone applications, you can pay with a pass on the phone. There are cards that let you tap the checkout machine, and the money is paid automatically.

Insurance on Purchases
Several credit cards offer insurance on items you buy for a specific time period. You read the print of the credit card’s terms of the agreement to see precisely what type of protection your credit card offers. This means if something gets broken, lost, or stolen shortly after you buy it, you can get your money back. If you paid in cash, it will be gone forever.

Grace period
When you make a debit card purchase then your money is gone right away. When you make a credit card purchase then the money remains in your checking account unless you pay the bills.

There is no need for cash.
Forget trying to find an ATM, and paying ridiculous fees to access your own money. With a credit card, there is no need to carry cash. Many companies have place credit card slots on drinks and other vending machines, so you will not have to scrounge for change. This’s a security problem, because if you get robbed that you will not be losing cash that’ll be unaccountable when you make a police report.

Track your spending for you
Do you want to make your budget the best? Credit card statements actually track your expenses. Your purchases get recorded online with all the important info where, when, how much, and how frequently you are spending. Few card companies keep the spending records for years. This benefit becomes useful come tax time. With one record of the spending compiled for the past year, you will save time and effort on taxes. Rental property expenses, business expenses, charity contributions, and more tricky tax return places all show up on a credit card statement.

Let you transfer the balance
In a balance transfer, you move debt from one credit card to another. Other debts, like car loans and monthly installment payments, may be moved to a balance transfer credit card. You will have to pay what you owe, obviously. But if you switch the debt to a card with a low-interest rate that you save money over time. Balance transfers may consolidate debt and make your life easy.

Purchase protection
Customer protection is a big perk of several credit cards. If you purchase an item with a credit card and later find out it is damaged or the quality is poor, you can return the item and you can get the charge removed. Credit cards can offer extended warranties on furniture, electronics, and other items you hope to use for a longer. In several cases, the card doubles the time on the warranty of the manufacturer. Ensure to keep your receipts.

Built-in grace periods
Necessarily credit cards offer a zero-interest loan for 30 days or less. Unlike debit cards, credit cards do not need you to have the funds for purchase instantly. There is a grace period for you to make payment arrangements. Utilize this grace period wisely, since credit cards work great for you if you pay off as much as you can every month.

Tack on the insurance
Check out the customer protections offered with your credit card. Chances are you will discover advantages you did not know you had. Additionally, to extended warranties and buying protection, several cards offer return protection, travel insurance, rental car insurance.

Universally accepted
Speaking of travel then a credit card is a good friend when you are traveling. Homing and rental cars are much easier to book with credit than debit. Rental services place a hold of some hundred dollars on your card when you make these rentals. This hold may be inconvenient with a debit card. Credit cards are more readily accepted than debit cards globally. If you are traveling to a foreign country, plan to utilize the low exchange rates on your credit card rather than paying higher exchange rates for cash at airports.