Top 7 Reasons Why I Use My Credit Card for Everything

By Nora Dunn. Last updated 23 February 2017. 101 comments
Photo: JD Hancock

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I charge absolutely everything to my credit card. Everything. Even $3 purchases if I can. I am a credit card junkie (and have been for many years) for a number of reasons. Here’s my countdown of them.

7. It builds up a great credit rating.

By charging and paying off up to thousands of dollars in expenses each month, I have built up a rock-solid credit rating — the best one possible. So whenever I have sauntered into the bank for a loan, I have been accepted right away, and at the lowest possible interest rates, with no security deposits required. (See also: How to Use Credit Cards to Improve Your Credit Score)

6. It's quick and easy.

Swiping or dipping a card these days is often as quick as (if not faster than) paying with cash and counting out coins.

5. It's great for accounting and spending reports.

Since I don't dole out cash, or make purchases on my debit card (and I rarely use checks), all my monthly spending is nicely bundled into one report — my monthly credit card statement. Not only that but my current credit card of choice actually categorizes my spending for me, so at a glance I can see how I've spent my pennies for the month and year-to-date.

4. I don't need to carry cash.

I don’t have to make stops to ATMs to keep enough cash in my wallet, which is also one less thing to remember to bring whenever I head out the door. Not to mention the less I have to deal with storing and keeping track of loose change, the better.

3. Automated billing is great.

Cell phone bills, utilities, cable, you name it. If I can sign up for automatic billing, I do. It doesn't mean I don't look at each carrier's statement to ensure the charge is correct. But it does mean that on a monthly basis I don't have to worry about paying any bills (other than my credit card!) — they're already paid.

2. They provide free services and protection.

From concierge services to car rental insurance and extended warranty, my credit card provides extra services and protections that I wouldn’t normally pay for, but benefit from greatly, especially should the rare unfortunate thing happen. If someone steals my brand new iPhone, purchase protection will replace it. If I get into a fender bender with my rental car, my credit card insures it. (See also: Awesome Credit Card Perks You Didn’t Know About)

And my number one reason for charging everything to my credit card (drum roll, please):

1. I get frequent flyer miles.

Since I started to charge all expenses to my credit cards, I have collected and redeemed miles for everything from fancy dinners to sports gear, to multiple flights all around the world. It’s easy to get started with travel rewards, but redeeming miles for travel isn’t your cup of tea, a cash back card will give you free cash just for using your credit card instead of cash (of course, the only way you stay ahead is by paying off every balance, every month. Any interest charges will obliterate any benefit or reward a card can offer). (See also: Best Travel Reward Credit Cards)

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Guest's picture
Chris

The percentage that the credit cards take from the business is really a big hit for small businesses. Big businesses can negotiate a smaller percentage, but they still pass the cost on. Just another way that the 1% are getting richer and the neighborhood hardware store goes out of business.

I know it is hard to avoid using them for many things--airfare--car rentals--etc. I try to avoid using them for small businesses or local businesses.