Eight Reasons You Should Only Pay With a Credit Card
My last post went over the rules for using credit cards wisely. You need to follow the rules because using a credit card is dangerous if you don’t know what you’re doing. So be sure to read that post first.
But today we’re talking about the benefits of credit cards.
And the benefits are so staggering that if you can use credit cards wisely, they should be your primary method of payment.
Here are a few of the benefits of paying with a credit card.
Miles, Points, and Cash Back
This is by far the biggest reasons to use credit cards.
When you pay with cash, every dollar you spend is gone forever. Ditto for debit cards. But with credit cards, a small percentage of every transaction comes back to you.
It is generally in the form of “miles” or “points,” but both of these currencies can be converted into cash.
How much cashback can you earn? Well, it depends. But let’s look at the floor. A card like the Chase Freedom Unlimited will give you 1.5 points for every dollar spent and each point is worth one cent of cash back. This means that if you normally spend $30,000 a year you’ll get $450 in cash back.
