4 Reasons You Should Use Your Credit Card for Everything

Financial experts everywhere tell you that your credit card is the enemy. They say that you will overspend and end up a slave to your debt. This can absolutely be a problem for some people. But it doesn’t have to be. If you’re good with your money, there are a lot of benefits when you use your credit card for everything.

Here are 4 reasons why it can work for you:

Build a Mighty Credit Score

Being able to show that you can spend hundreds of dollars every month and pay it off faithfully is a great way to build a good credit score. Use your credit card for every day purchases and work your way into the best possible credit rating for when you next have to visit the bank for a loan. You’ll get your approval at lightning speed and walk out with the best rate available. And all for paying off that monthly coffee bill you were going to buy anyway.

Automate Your Expenses

Contrary to public opinion, automating your expenses doesn’t mean you don’t pay attention to your bills. It doesn’t mean you aren’t accountable and just charge things until you run out of room, it does mean that you can free up some serious time and headspace with the right setup.

When you use your credit card to automate your bill payments, you only have to worry about one due date instead of five. It means you don’t have to get a play-by-play of your bank account to ensure you have enough money to pay everything. It’s convenient and easy to set up. You still have to go through your transactions to make sure that everything is what it’s supposed to be, but at least it’s all in one place.

Take Advantage of Rewards Points

This is probably one of the best reasons to use your credit card for every day purchases. Get a travel rewards card and watch your points rack up with gas, groceries, and all the purchases you’d make anyway.

You still need your budget to manage your spending; you just pull out a different piece of plastic to pay for things. The important thing to remember about this strategy is that you only use it for purchases you’d make anyway.

The minute you start justifying your spending with “I get travel miles so it’s okay” is the minute you put the card down and step away slowly. Don’t get in over your head.

It’s the Perfect Budgeting Tool

Another benefit to using plastic for your purchases means your credit card statements are a one stop shop for tracking your spending. Downloading your statement means you have everything from your rent payment, to your gym membership, and that pesky coffee habit in one place to peruse at your leisure.

If you use a tool like Quicken or Mint, watch your monthly spending unfurl in one beautiful banner of incoming and outgoing with little fuss or muss.

Once you have a good budget in place that works for you, drop the debit card and use your credit card – and watch the benefits pile up.