Credit cards are great if you use them correctly. They not only give you points toward purchasing things, other perks, discounts, frequent flyer miles (depending on your card), and sometimes, cash back just for spending money on them, they are also a great source of emergency money if an unfortunate, unforeseen financial emergency happened and you didn’t have enough in savings, nor did you have time to get a loan. As long as you pay the balance off in full each month, you will never pay interest. Therefore, it would be just as if you were using cash, only you wouldn’t have to carry large wads of cash around, attracting the wrong attention, nor would you always have to be taking out cash to ensure you had enough. If your money got lost or stolen, you would be able to get the money back. You couldn’t do that with cash!
In fact, even if you had a large amount of cash to pay something off, it would be ideal to pay it off using the credit card (or varying credit cards if it is too large of an amount) so that you can get all your points and rewards from using your credit card and paying it off, just be sure to pay it off when the bill comes so you don’t have to pay interest! Therefore, you basically get all those rewards on your card free of charge! It is therefore wise, if you can, to put everything you can on your credit card as long as you have the money to pay it off.
Not only will you be gaining lots of rewards on your credit card free of charge by using it and paying off the balance right away, but you will also be building up your credit at the same time, which is very important to have if you use credit to pay for things, if you try to get a loan of any kind, or often times, to qualify for insurance! Even if you don’t think you will ever use credit, you never know when an emergency may happen, or ongoing medical bills that require more money than what you have. It is always wise to be prepared with very good credit just in case!
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