Many people still rely on cash or debit cards for their everyday purchases. The downside to this is that they’re missing out on cashback rewards and benefits that come with using a credit card.
It's understandable to want to avoid using your credit card too much—higher interest rates and potential debt are valid concerns. However, several intelligent strategies allow you to pay for necessary expenses and earn rewards without getting hit with monthly interest charges.
Read on to discover why you should be using a rewards credit card to buy groceries, gas, and more.
Why Use a Credit Card for Everyday Expenses?
There are several reasons why using a credit card for your everyday purchases can be a smart financial move:
- Build a good credit history: Every time you make a purchase and pay your bill on time, you're demonstrating to lenders that you're a responsible borrower. This can be helpful if one day you want to take out a loan for a car, house, or other major purchase.
- Earn rewards: Many credit cards offer rewards programs that allow you to earn points, miles, or cash back on your purchases. These rewards can then be redeemed for a variety of things such as travel, gift cards, or merchandise.
- Enhanced security: Using a credit card can be a safer way to shop than using a debit card. If your debit card is lost or stolen, thieves may try to directly access the funds in your checking account.
- Dispute resolution: Credit cards typically offer more robust dispute resolution processes than debit cards. If there are incorrect charges or undelivered products, you can dispute them with your credit card company which will often investigate and potentially reverse the charge while the matter is resolved.
- Travel benefits: Many rewards credit cards offer perks geared towards travelers. These benefits might include free checked bags, airport lounge access, or travel insurance for things like lost luggage or trip cancellations.
9 Tips for Using Your Credit Card Responsibly
While using a credit card for everyday expenses can be beneficial, it's important to do so responsibly. Here are 9 tips to help you get the most out of your credit card without going into debt:
1. Make a Full Payment
Pay your balance in full each month. This is the single most important factor in responsible credit card use. Not only does it help you avoid accruing interest, but it also demonstrates a pattern of timely payments that will positively impact your credit score.
2. Adhere to a Budget
Set a budget and stick to it. Determine a realistic amount you can comfortably spend with your credit card each month. Avoid impulse purchases and track your spending to prevent overspending.
3. Interest Awareness
Be aware of interest rates. Choose a credit card with a lower interest rate, particularly if you occasionally need to carry a balance. High-interest rates can negate any potential rewards and create a cycle of debt.
4. Read Your Statements
Monitor your credit card statements regularly. Review transactions to spot fraudulent activity or billing errors. Promptly report any discrepancies to your credit card company.
5. Get Rewarded
Analyze your spending patterns and select a card with a rewards program that aligns with them. Whether you prioritize travel miles, cash back, or something else—make sure to maximize your benefits.
6. Optimize Balances
Take advantage of balance transfers. If you have existing higher-interest credit card debt, consider transferring balances to a card with a 0% introductory APR offer. This can save a significant amount in interest while you pay down the debt.
7. Coverage Maximization
Utilize purchase protection or extended warranties. Research your card's protection benefits, which may safeguard against theft, damage, or breakdowns beyond a product's standard warranty. This can save you money in the event of unexpected mishaps.
8. Automate Bills
You might be able to pay your bills automatically using your credit card. Many providers allow you to set up automatic payments. You’ll effortlessly earn rewards while streamlining your bill payments to prevent late fees.
9. Utilization Ratio
Use your credit card responsibly to improve your credit utilization ratio because lenders consider the percentage of available credit you're using. Keeping this below 30% shows responsible credit management and positively impacts your credit score.
The Power of the Visa Platinum Rewards Credit Card
The strategies discussed in this article can significantly enhance your everyday spending. To maximize those benefits, consider the Visa Platinum Rewards Credit Card from Radiant Credit Union.
This card has no annual fees, a competitive interest rate, and a rewards program that allows you to earn points on every dollar you spend. You can redeem your points for cash back, travel, gift cards, and more.
Along with these perks, it also enables you to:
- Build credit responsibly: You can improve your credit history with timely payments and paying your bill off in full every month.
- Earn rewards on everyday purchases: The card offers cash back, gift cards, merchandise, travel experiences, or the option to make charitable donations.
- Enjoy added security and convenience: Benefit from the security of a credit card along with contactless payments and mobile wallet compatibility.
- Save money with no hidden fees: Radiant Credit Union doesn't charge annual fees or balance transfer fees.
- Dime Back Rewards on every purchase: Every time you use your Radiant credit card, you get a dime back. And yes, that's in addition to the rewards mentioned above.
Additional Perks
The Visa Platinum Rewards Credit Card also includes these valuable features:
- Checkout With Points: Redeem your rewards for discounts at checkout with major retailers.
- Pay With Points: Effortlessly cover recent eligible purchases using your accumulated rewards points.
Discover the convenience and potential savings that come with using points for everyday purchases. Transform your everyday spending and get more from your money.
Take the First Step to Greater Credit Card Rewards
Smart credit card usage can positively impact your financial life. Strategic selection of the right one can maximize your returns and unlock many valuable benefits. Click below to learn how easy it is to get approved for a credit card that transforms your everyday spending into points, cash back, or travel.