5 reasons you should be using your credit card for everything.

Using your credit card for daily spending rather than just occasional purchases comes with several benefits. using a credit card vs a debit is only beneficial when used RESPOnsibly . You should be using your credit card for every purchase and here are 5 reasons why.

1. iNCREASES CREDIT SCORE.

When we utilize our debit cards, your funds are withdrawn directly out your checking account, but this activity doesn’t post on your credit report.  The only benefit here is having full access to funds you know exist when you can enjoy perks of spending if you use your credit card instead. These perks include lower interest rates for mortgages and cars, higher credit limits, and scoring a position at your dream job.

2. Cash Back.

My ultimate favorite because who doesn’t like free money. You literally receive money because you are spending money. The cash-back credit card was first popularized in the United States by Discover. These are credit cards that offers 2%, 3% or even as much as 6% of your purchases rebated in the form of a cashback. A debit card could never.

3. Frequent Flyer Miles.

Yes, free flights are a thing! Cardholders generally earn miles at a rate of one mile per dollar in net purchases, or sometimes one mile per two dollars spent for lower-end cards that have no annual fee.  These are often enough to put you 50–100% of the way toward an award flight after meeting the card’s initial spending requirement.

4. Universal Acceptance.

For example; Rental car companies and hotels want customers to pay with credit cards because it makes it easier to charge customers for any damage they cause to a room or a car. The merchant, therefore, needs to block out a certain amount of your available credit line to protect themselves from potential charges they didn’t anticipate. So if you want to pay for one of these items with a debit card, the company may insist on putting a hold of several hundred dollars on your account.

5. Grace Period.

When you make a debit card purchase, your money is gone right away. When you make a credit card purchase, your money remains in your checking account until you pay your credit card bill. Every time you make a purchase with your  credit card it is best to pay as much as the balance you can each month to receive the benefits and you can with a grace period. No need to wait for payday just pay it back later. You have until the closing date of each month to pay the statement.

Shift as many of your purchases as possible to your credit card, and don’t use your debit card for anything other than ATM access.