4 Reasons to Buy Nearly Everything with Credit Cards

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Credit cards offer a convenient way to pay for purchases. All you have to do is swipe your card at checkout, eliminating the need to carry around cash at all times.

Using credit cards to pay for most purchases can be beneficial as long as you only use them to make purchases you can afford. I'll share a few reasons to consider buying nearly everything with credit cards.

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1. Earn rewards

You won't earn rewards using cash to pay for your purchases, and most debit cards don't offer rewards either. However, you can earn valuable rewards if you make everyday purchases using rewards credit cards.

Consider which rewards credit card to use when paying for each purchase. Some cards offer flat-rate rewards on all purchases, regardless of what you're buying, while others offer bonus rewards in select categories, like dining, groceries, or travel.

The card you choose matters because the right one can yield more rewards in the long run. Some people prefer the simplicity of cash back earnings. If you want to earn cash back rewards when you swipe your card, review our list of the best cash back credit cards .

2. You can easily track your spending

When you pay for purchases with cash, it can be challenging to track your spending. However, when you pay with credit cards, each charge will be listed in your online account. You can log in through your card issuer's website or mobile app to view your monthly spending. This can help you track your spending so you stay on budget.

3. You can access valuable perks

When you use your credit card for everyday purchases, you can benefit from valuable perks your credit card issuer provides. For example, some credit cards offer extended warranties, cellphone insurance, or purchase protection.

You can further protect yourself by paying for your purchases with a card with these benefits. Before adding a new credit card to your wallet, review all the benefits so you can choose a card with added perks that you value and will use.

4. You can build credit

Having a healthy credit history is ideal. A good credit score and a credit report free of negative marks will make you appear more financially stable, which looks good to lenders. Your credit will be reviewed if you apply for a loan, like an auto loan or a mortgage. Using a credit card and paying off your balance regularly is one way to build credit and improve your credit score.

There's one big caveat

Using your credit card for everyday purchases is smart -- as long as you can afford what you're buying. If you carry a balance on your card, you'll pay interest. Credit card interest is high -- according to the Federal Reserve Bank of St. Louis, the average rate on credit cards assessed interest was 22.76% in May 2024. Your existing debt can quickly grow the longer it remains unpaid. That's why it's best to avoid credit card interest charges altogether.

The best strategy is to only use credit cards for purchases you can afford to pay off in full. You should reconsider if you plan to buy something you can't afford. Wait until you have enough cash saved before charging something costly so you can immediately pay it off with your savings.

If you struggle with overspending, you can set spending limits through your online credit card account. You can opt in for alerts when your account balance reaches a set amount you choose. Doing so can help you stay on track to avoid costly debt.

Credit cards can be useful

Credit cards are a great financial tool. As long as you use them carefully, they make it easy to pay for everyday purchases. Consider charging most of your purchases to your credit cards so you can access valuable perks, build credit, track your spending with ease, and earn rewards. Check out our list of the best credit cards to learn more about our favorite cards.

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