Credit cards present a dangerous and slippery slope. If self-control and limiting expenses are things that are tough for you, please stop reading this post immediately. But if not, and you’d like a few justifications for using cards, continue.
Credit cards can lead to a dangerous pattern of overspending and debilitating debt.
When used correctly, credit can work in our favor. Here are a few reasons why I don’t see myself cutting the cord with credit cards anytime soon.
1) Cash Back: I love money. I hate spending money and I love making money. Obviously, there are expenses in life. Using the right cash back credit cards can earn money on normal everyday expenses. Take advantage of the money you’d have spent anyways.
2) Extended Warranties: Big purchases often come with a manufacturer’s warranty. While one year can be great, it’s awesome to have additional time thanks to a credit card company. For instance, your expensive cell phone likely has a one year warranty. Some cards will automatically help get you through the second year should any trouble present itself. I even have a card that’ll add three years to a warranty. These things often become big factors in my decision about which card to use for certain items.
3) Purchase Protections: Did the price of that wicked expensive item drop within 90 days after purchase?
Let some companies know and they’ll make up the difference. Was that item lost, stolen, or broken? You might be covered. Need to fight a company who isn’t willing to cooperate, despite what they agreed to? To the rescue. Credit card companies offer many protections to consumers when it comes to making sure their hard-earned money is protected.
4) A Whole Host Of Other Benefits: Each card is different. Some offer travel insurance, rental car insurance, and much more. As each card competes to bring in another customer, the benefits become more lucrative. While some companies make accessing these benefits easier than others, they’re usually attainable with relative ease. Read the benefits info on cards because it’s highly likely you’ll be impressed with some features.
5) Cash Back Bonuses:
Sign up for a card and get $150 after you spend $500? Yeah. Were you going to spend $500 on something in 3 months? Groceries? Gas? Oil? Sure, I’ll take $150. Now, I don’t do this with every offer that comes along. There’s a price for sanity and making sure that a card truly works before adding it to the other 75 cards in your wallet (if that’s your thing). It’d be silly, however, to not contemplate getting a large bonus to spend money we were already going to spend.
6) Someday You Might Need Credit: I never did, or so I thought. I think credit is a stupid system. So I need to owe money in order to prove I’m a good candidate for a house loan? It seems silly. Unless paying cash for a home is within reach, you’ll want to have a credit score. A great credit score doesn’t hurt.
There are still more reasons folks, but those are my big reasons. Again, use the force for good and not evil. Make credit work for you because it can be advantageous.