Eight Great Reasons Why You Should Use a Credit Card

great reasons to use a credit card

Many are wary about using credit cards, especially since there are many reasons why it can ruin your life. However, these credit cards were made for a reason. Well, eight reasons, at least. If you are one of the few that can manage the use of their credit cards well, here are eight great reasons you should stick to using them:

Credit Cards Build Credit History

Credit cards are actually the most common form of credit that helps you build a credit history. Yes, it is necessary for you to actually have a good credit score to be approved for a credit card but you can start out with store cards, since those are easier to be approved for. Those monthly payments you make on your credit cards have an impact on your credit report so if you pay on time every time, then you are able to build a good credit history.

Credit Card Rewards

Who doesn’t love rewards? We all do. And because there are so many credit card companies out there, they compete with each other by providing reward points to their customers. Whether you are earning points, miles or cash backs, these rewards are irresistible and quite useful too.


We all know it’s not safe to carry a lot of cash, and credit cards certainly make our lives easier and safer. No matter how much you have to spend at the supermarket or at your favorite restaurant, credit cards are quick and easy to use.


With credit cards, you don’t have to always make sure you have cash in your wallet. You don’t have to go to the ATM before you go to the coffee shop or count your change at the counter. Swiping is easy and convenient for you and for the people behind you waiting their turn.

International Acceptance

Anywhere you go around the planet, you can rest assured that your international credit card will be accepted. This reason even magnifies the convenience and the safety provided by using credit cards. There’s no more hassle of finding a currency exchange shop or filling out bank forms to get some cash wire transferred from home.


Most credit card companies offer insurance. This insurance often covers things like your purchases, fraud, disputes or even returns. Things are just easier to keep track of and manage when purchases are made with credit cards. You have the option to take advantage of payment protection plans, disability benefits and whatever else your credit card company offers in terms of getting you covered.

Your credit card may also offer you travel insurance and car insurance on rental vehicles, so always double check before you book your next trip.

Grace Period

Credit card statements follow a cycle wherein you get to spend some money by using your credit card and have the option to pay it in full at the end of your billing cycle or at least pay the minimum required. Either way, you have a grace period to come up with the funds. So if you are running low on cash and you have some important purchases to make, credit cards are very useful to have.

Extended Warranties

Credit card companies have protection plans that cover extended warranties. Not all credit cards offer this perk but it’s best to check with the store before you buy something. Some stores offer an extended warranty if you use a certain credit card. Some credit cards automatically provide extended warranties for your purchases.

Take advantage of what you can get from your credit card by knowing everything there is to know. Sometimes, it pays to read the fine print because you will actually learn quite a lot of things from there.


    • Sharon

      Sharon 12/09/2013 6:34 a.m. #

      There are so many benefits for and against credit cards and it is just as important to know the benefits. These often get forgotten about with all the negative points that seem to surround credit cards.

      • Sicorra

        Sicorra 12/10/2013 3:54 p.m. #

        Yes, there are a lot of benefits to using a credit card and I bet you most people only use a few of them and are not even familiar with the rest, or as you said, have forgotten about them.

    • Brad @ RichmondSavers.com

      Brad @ RichmondSavers.com 12/09/2013 8:34 a.m. #

      Great list! I particularly like 'credit card rewards' as we definitely do everything we can to maximize our free travel through rewards. I've earned over $15,000 worth of free travel just using this method!
      If you or anyone else is interested, I'm offering a free travel rewards coaching service through my site...

      • Sicorra

        Sicorra 12/10/2013 3:55 p.m. #

        Good for you for being able to do that. We have used quite a few free travel rewards over the years as well both for flights and hotel bookings.

    • Shannon @ The Heavy Purse

      Shannon @ The Heavy Purse 12/09/2013 11:15 a.m. #

      Credit cards get a bad rep but when used responsibly, they offer some great benefits. Sadly, too many people do not know how to use them responsibly. I appreciate the convenience and reward points they provide.

      • Sicorra

        Sicorra 12/10/2013 3:56 p.m. #

        It is easy to get sucked into using credit cards as free money, but once you learn how to manage them well, they can be quite useful and the rewards are getting nicer all the time.

        Have a great week Shannon!

    • Christy Garrett @ Uplifting Families

      Christy Garrett @ Uplifting Families 12/09/2013 5:12 p.m. #

      Credit cards are a great resource if they are used responsibility. Thank you for sharing these tips.

      • Sicorra

        Sicorra 12/10/2013 3:57 p.m. #

        Yes, I agree. Thanks Christy!

    • Stephanie @ Six Figures Under

      Stephanie @ Six Figures Under 12/09/2013 7:16 p.m. #

      I agree that credit cards can have some great benefits when used responsibly. For me, the best reasons that you listed are Rewards, Convenience, Safety and Insurance.

      • Sicorra

        Sicorra 12/10/2013 3:58 p.m. #

        Hey Stephanie, thanks for stopping by!

        Yes, I do enjoy the safety and convenience aspect as well. I am not one to carry much cash on me, just cuz you never know what might happen.

    • Edgar @ Degrees and Debt

      Edgar @ Degrees and Debt 12/10/2013 7:04 a.m. #

      I do prefer to use credit cards over cash. I recently opened a new credit card for the promo and after my first bill cycle was able to get over $100 in cash reward statement credits, pretty good!

      • Sicorra

        Sicorra 12/10/2013 3:59 p.m. #

        $100 - that is definitely good Edgar! Congrats :-)

    • Corina Ramos

      Corina Ramos 12/10/2013 8:17 a.m. #

      Hey there Sicorra,

      I'm very careful with my credit cards now but I wasn't like that before and that got me into a lot of trouble.

      I don't use my credit cards much, just once a month to keep it active and I keep it under $100 so I can pay off the balance.

      We have insurance to protect us from fraud and such but I would like to check to see if they offer extended warranties.

      Thanks for sharing these tips with us. Hope you're having a great day. Be careful out there!

      • Sicorra

        Sicorra 12/10/2013 4:01 p.m. #

        Hey Cori, Yes, most do offer extended warranties, which I think is something many people overlook. It is great when you make a major purchase such as an appliance for your home.

        Have a great week!

    • CarolB

      CarolB 12/10/2013 9:43 a.m. #

      Great explanations Sicorra. With responsible use, credit cards are a great resource. Key operative word - responsible! Too many times you hear the story of the person who rang up $1000's on multiple credit cards. Sad. But for those who use them wisely - like paying off your bill at the end of each and every cycle - and only charging what you know you can pay - the rewards can add up. We charge practically everything! And pay it off of course. The rewards? We use ours to cash in on travel - hotels and flights. Last year it was 5 free nights at a Marriott - which we added in a promo bonus to actually get 7. Credit card rewards are also helping to pay for our Spring 2014 airfare.

      • Sicorra

        Sicorra 12/10/2013 4:04 p.m. #

        The travel rewards are perfect for your family Carol. You guys love to travel and it is always nice to save some money or get free nights at a hotel, like the Marriott, or a free airline ticket. And good for you and your family for using them and paying them off right away too.

        Have a great week!

    • Corinne

      Corinne 12/10/2013 8:41 p.m. #

      Great post Sicorra. Credit cards can definitely be beneficial, if they are used correctly. Before my son was born, we paid off all our debt and now have one credit card we use regularly, and pay off the balance each month. It's a miles card and we managed to get a free car rental for our family vacation this past summer!

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