![]() ![]() If you want credit cards to benefit you and your finances, you don't want to owe an ever-growing balance on your cards month after month.Ĭredit cards can be a great way to make managing your everyday expenses easier and safer, and you get the chance to earn rewards on your spending to boot. Credit card interest is not cheap - as of the fourth quarter of 2022, the average credit card had an APR of 19.07%. Will you have to carry a balance?įinally, if you're unable to pay off your balance in full every month, using a credit card for all your expenses will result in interest charges on the balance you carry forward. If you're concerned about this, you might consider splitting your purchases and bills across multiple cards (provided you can keep up with multiple payments). Maxing out a credit card will do your credit score no favors. You definitely don't want to put yourself in a situation where you're running up against your credit limit. Will you be bumping against your credit limit? Any time it will cost you more to pay a bill with a credit card, it's a good idea to use another payment method. If your bill is $100, and the fee is $3, will you earn at least 3% back by using the credit card? You might also have a hard time paying your mortgage loan with a credit card, as you may need to use a third-party payment processor (and pay a fee). If you want to use your credit card to pay your electric bill, for example, check to see whether you'll be assessed a processing fee for doing so. Will the fees involved supersede the rewards earned? If you're ready to start charging all your expenses on your credit card, take a quick breather and ask these questions first. The chip technology in a credit card keeps your data safe, and you can generally opt in for fraud alerts if your card issuer spots something fishy with your account. With many credit cards, you're not liable for fraudulent charges if your card is lost or stolen (and if you are, it's generally for a small amount of money, like $50). You can take advantage of security featuresĬredit cards are one of the most secure ways to pay. ![]() Sometimes you'll get a higher earnings rate on certain purchases, so if you're comfortable juggling multiple credit cards, you can maximize your earnings by using the right card at the right time. Some credit cards give you the chance to earn rewards on your spending in the form of cash back, points, or airline miles. More: Save while you pay off debt with one of these top-rated balance transfer credit cards You can earn rewards Save: This credit card has one of the longest intro 0% interest periods around ![]() Some credit card mobile apps and websites will even helpfully categorize the spending for you - one of mine even creates a lovely pie chart showing where my money goes! ![]() You're living on a budget, right? When it comes time to figure out how much you're spending on different budget items every month, it's very easy to log into your credit card account on your computer or in your mobile app and see all those costs. It's the features and perks of credit cards that make them ideal to pay for your groceries, gas, clothing purchases, utility bills, and beyond. With all these benefits in mind, here's why it pays to use your credit card for as many of your expenses as possible. This builds your credit score, and having a good credit score can make it easier and cheaper to borrow money in more high-stakes situations, like getting a mortgage loan. Plus, as you use your credit card and pay it off, you're demonstrating to the card issuer that you can be trusted with credit. They give you access to a line of credit that you can use to pay for your everyday purchases, and they're accepted nearly everywhere these days. Check out our picks for the best credit cardsįew things in life are more convenient than credit cards. ![]()
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