Using a credit card instead of cash, check, or debit card for daily expenses can often be the logical, convenient, and even lucrative option. I’m gonna run through three simple reasons why you should be making payments with a credit card. However, stick around (or skip) to the end where I explain the massive downside of credit card use. And yes, while this piece is clearly intended for beginners, I do hope for it also serves as a proper reminder for those who need it most... 1: TIME
2: PROTECTIONAs a general rule, it’s always harder to retrieve money you’ve already spent, as opposed to keeping what’s still in your pocket. Hear me out. Let’s say you buy a product only to find out it was broken. Or that package that you ordered online gets lost or stolen. Had you paid with cash or debit card, you may never see that money again. However, credit cards got your back. What that means is credit cards are insured and cover a variety of incidents; some even cover lost baggage, rental car damage, return protection, and a buncha other stuff. Bottom line, if you feel you didn’t receive the goods you paid for, just give your credit card company a call and they should be able to help. 3: SALE Everything’s on sale! Well sort of. Many credit cards offer cash back, miles, or points for every dollar spent. So the way I see it, I receive a discount on everything I ever buy. And while something like 2% back may not seem like a lot, it definitely adds up over time. Plus, combine that with other Cashback options and your everyday savings will be something to be proud of. But Wait.So before you go all swipe crazy there’s one more thing you’re gonna need to hear. U.S. credit card debt has hit a record $930 billion; which is like a ton of money. Companies, especially credit card companies, don’t just give out freebies. The three credit card perks I just raved about are essentially subsidized by the people paying interest. The game of interest is far from fun as people get caught in a vicious cycle of paying interest, and then interest on that interest; a deep hole that very few come out of. I've specifically posted this piece first, in an effort to lay the proper ground work for this site. About 8 years ago, when I became extremely interested in credit cards, I was super eager to dive in head first. However, prior to applying for anything, I would force myself to do extensive research on what exactly I was applying for.
I committed to never buying anything I wouldn't be able to pay back come the due date. I would advise anyone reading this to do the same. I’ll leave you off with the best piece of credit card advice you’ll probably ever hear. There are three rules to credit card use; 1) Don’t use a credit card if you won’t pay the bill on time and in full. 2) Don’t use a credit card if you won’t pay the bill on time and in full. And 3) Don’t use a credit card if you won’t pay the bill on time and in full. Swipe Safely, Samuel TRN may receive commission from links. We appreciate your support!
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