When to Use a Credit Card

Many people believe credit cards are very dangerous. And they can be - there is no doubt about that. Countless people use credit cards each month to their peril, often ending up in bankruptcy because they cannot afford to pay their consumer credit. But, there are good reasons to have and use credit cards. In fact, if you’re smart with your money you can earn money using your cards.

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You Get a Bonus – Some credit cards offer you immediate cash and credit the moment you open the account and if you use it within a certain amount of time. If you pay the bill off before it adds interest (which is simple to do now that you can pay online), then it’s a great deal. It’s like getting free money.

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You Get Cash Back – If you’re going to get cash back for your purchases, and you’re going to pay it off before any interest is added, then again, you’re getting free money. Why wouldn’t you do it? Some responsible people use a cash back credit card for all their purchases (even including their rent), then collect free money every month as they pay their balance every month.

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You Get Points – Some cards offer points which can be used for things like flights, hotel rooms, and even buying groceries or gas. Each card is different. Find a card that offers points for things you already use often. Then use the card for planned purchases, pay the full balance each month, and collect your points which are like even more free money.

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