With all of the news you see about fraud and credit cards, you would think that ditching those bits of plastic and returning to an all cash lifestyle would be sensible and save you money. But you would be thinking wrong.
In fact, if you handle them correctly, making that monthly online payment to pay off your balance for your credit card each month is smarter and cheaper than using cash. Don’t believe us? Well, here are just four reason for turning to credit cards to help you live a better life.
Of course, one of the biggest reasons many of us have our credit cards is that we get those lovely rewards that come with them. But if you actually pay attention to the kind of reward your credit card gives you, and tailor your choices to your lifestyle, it can pay off big.
If you love to travel, then airline mileage is probably one of the more popular rewards. But it pays off best if you pick a credit card issued by the airline you tend to use all the time and if they give you reward points for everything you buy on that card. This would allow you to rack up points for that annual trip on your favorite airline and maybe even upgrade to first class. That is a reward worth having.
While not everyone is working to improve their credit score, it is a rare person who doesn’t want to do so. Even if you aren’t buying a new home, the better your credit score the lower your interest rate on any kind of loan. Keeping your credit card in good shape and improving your score by paying off the balance each month is a great way to rebuild poor scores.
Debit Cards and Fraud
If you use your debit card instead of your credit card, thinking it is safer you may want to think about that. Banks are just as susceptible to fraud and hacking as we ordinary folks are, and more so in some cases. So, while you may think that using cash, or a debit card, instead of a credit card will protect you from fraud or someone hacking your account, you would be wrong.
In fact, because most credit cards are insured and by and large you can get your credit card company to refund you any charges that have shown up fraudulently on your credit card, the same is not true with a debit card. Getting that cash from your debit card account refunded can be a long and difficult process, if it is possible at all.
The Ease of It All
You have to admit that one of the biggest reasons most of us carry a credit card instead of cash is that it has become so easy. One little swipe of the card, thanks to service providers like AltaPay, and you are taken care of in a flash. In fact, many companies now take payments online as well and as digital credit cards grow we will soon all be able to simply swipe from our phones to pay for everything from movie tickets to groceries.