I’m a huge believer in using credit cards even if you don’t need them. In fact, that’s the ONLY way I think they should be used.
I’ve never carried a balance on a credit card, but I use them regularly. I know this isn’t feasible for everybody, but I believe it should be everybody’s goal.
So, why do we use credit cards at all?
The rewards.
Specifically: cash.
We have two cash back credit cards. I’m not going to name them here but they pay cash back for each purchase. Between 1-5%. One of the cards pays 3% back on gas purchases, so it’s used primarily for fill-ups. The other card pays 1% on all purchases, with up to 5% on categories that rotate every three months.
It’s free money.
As long as we make purchases on it that we can pay off and would make regardless, there’s no reason not to use the card.
Really, there’s just one extra step in the process. Instead of swiping a debit card, we swipe a credit card, and then just make a payment at the end of the month.
So far, we’ve used our cash back to buy two flat screen TVs. We bank the money and use it when we have something big to purchase.
And, it earns interest in our savings money market account in the meantime.
I know there are other rewards cards out there, but really, who could ever turn down cash?
Thank you for reading.