FACT: Cash is king, but credit is power. Let me explain …

There’s a whole lot of bad talk about using credit cards and many personal financial gurus advise against it. But is credit really all that bad for you?

Credit can be an excellent means of getting ahead in life if you pay your bills on time and you know how to play the game.

Here are 4 reasons to choose credit over cash:

Reason #1: They’re Excellent for Building Credit

Making small purchases on your credit card over time will allow you to gain credit history and show lenders you’re trustworthy.

After a few years of using credit cards to build credit, you’ll then be able to use your credit for larger, more important purchases, such as buying a house or car.

Most credit cards offer a grace period of 21-25 days to pay off your purchases. If you always aim to pay your statement balance each month, you could come out ahead financially for years to come.

Reason #2: You’ll Score Cashback Rewards and Mileage

This is one of my favorite reasons to use credit cards, and if you do it right, you can earn a ton of extra cash and benefits from your lenders. 

Most credit cards offer generous cashback rewards and mileage points when you use the card. Every credit card has its own set of terms and offers, but if you pay your bills on time to avoid interest and fees … 

Your lenders will owe you money instead of the other way around.

Reason #3: You’ll Enjoy the Travel Upgrades and Coverage

Want to go to Hawaii first-class while sipping free champaign? Want to feel secure as you drive your rental car, knowing your credit card company will handle accident claims?

Using a high-benefit credit card is the best way to go when you’re traveling, and it almost always beats cash. In many cases, you can get free upgrades and be able to rake in bonus rewards from using the card on your trip. 

Reason #4: Credit Cards Are Safer Than Cash

Using a credit card is the safest way to purchase, thanks to generous purchase protection offers that replace items that are stolen, damaged or lost.

Credit cards also place a nice “padding” between you and the seller, so if you ever want to dispute a purchased item, your lender may help you by acting as the intermediary. 

Recouping your money would not be so easy if you’d paid your hard-earned cash to a seller. Plus, if you’re using your debit card to pay cash for purchases, you could be exposing your bank account to theft. 

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Can you see why it pays to choose credit cards over cash? Credit cards can be an important part of building a solid financial future if you know how to use them to your advantage. They’re excellent for building solid credit, for earning cash rewards and mileage, for covering purchases and rental cars and for safer buying. Want more guidance on personal finance and credit?

Schedule a FREE consultation with our team and we’ll be happy to lock arms with you and guide you to credit success. It’s what we do.

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