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The Benefits Of Using A Credit Card Wisely

By Jason Larkins on November 28, 2012

Credit cards often get a bad reputation in personal finance circles: They have high interest rates, they lead to ruinous debt, and they're evil! Many personal finance gurus hiding your cards or even cancelling and cutting them up. But before you go freezing your them in a block of ice, you should know that there are many benefits to using a credit card wisely.

Build your credit score

Regardless of your personal opinion on credit cards and credit, unless you're planning on paying in cash, many large purchases that you make throughout your lifetime will require good credit in order to qualify for a loan. And, depending on the value of your credit score, you may even get a better rate.

If you use them responsibly and pay off your balance each month, you will be able to build your credit score over time without incurring interest charges.

Earn rewards

If you're using a credit card and paying it off monthly, why not get the card company to pay you? Many cards offer rewards in the form of points for travel, merchandise or services. Some offer a percentage of your spending back in the form of cash rewards. Still others may let you stay in hotels for free.

A great way to maximize your rewards is to choose a rewards card from a store or a service that you use very often. So if you travel a lot, get a card with travel rewards. If you mostly use your the card for groceries and utilities, get a card that gives you free groceries or cash back.

Maximize convenience

Let's face it - using a credit card is much more convenient than using cash or a debit card. Cash can't be replaced if lost and can be bulky. Debit cards can come with transaction charges depending on the bank or the retailer. With charge cards, you only need to carry one piece of plastic and you never have to worry about additional charges... unless you don't pay off your monthly balance!

They are also a convenient way to organize your bill payments. Instead of having to keep track of 3 or 4 different bills, you can pay each bill automatically through your credit card and then simply pay your credit card off each month.

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As you can see, there is no need to avoid credit cards if you're willing to use them wisely and responsibly. As long as you can pay off your balance each month, you can reap many benefits and ultimately, save yourself some time and money.

To learn more about great credit cards and credit score services check out Walmart Green Dot Card , Canceling Credit Card Hurt Credit , and Best Balance Transfer Credit Cards

Original article published on SooperArticles.com

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