Credit Card Advantages – Why you Should Use Plastic for Every Purchase
Credit Card Advantages Why you Should Use Plastic for Every Purchase
While you will want to avoid carrying credit card debt, owning a credit card and using it for each purchase you make can be a good financial move for a handful of reasons.
Free Money
Using a credit card is using free money for the length of the billing cycle. As long as you pay your bill in full and on time, this money is free to you for 20 30 days. The cash you would have otherwise used for your purchases can now remain in your checking or savings account, accumulating interest.
Budgeting and Record Keeping
Throwing everything on a credit card allows you to make one online payment each month for everything you buy. You also do not need to track each check or cash transaction daily; simply reference your credit card statement each month to see how you spend your money. Tracking those unavoidable cash purchases will be a lot easier as there will be very few of them. Accurate budgeting makes saving money easy.
Tax Deductions
Identifying tax deductible purchases come tax time is a breeze when most of the items were bought with a credit card. Simply highlight deductible purchases each month when you review your statement. Your odds of missing a valuable tax deduction will be greatly reduced; translating into fewer taxes paid and more money in your pocket.
Credit Cards Rewards Programs
Credit cards rewards programs are one of the best reasons to use a credit card. Whether you want cash back for each purchase, would like to choose from hundreds of free products and services, or like to accumulate airline miles, these programs make great financial sense.
Not having to pay for purchases immediately and receiving rewards for each charge made are good financial reasons to own a credit card and use it exclusively for making purchases. Keep in mind these benefits are only possible if you pay your balance in full each month so you do not build up credit card debt.