Can I Use Credit Cards For Everyday Purchases?

Many individuals think that credit cards should only be used for major purchases and unexpected expenses, not for regular spending. It is important to understand one of the most common misunderstandings around credit cards. As long as you don’t go over, there is no danger in using your credit card for everyday purchases. If you’re one of those people who think credit cards shouldn’t be used for regular purchases, you should read this article to see why it might beneficial to do so:

Should you use your Credit Card for everyday Purchases?

Yes, you are free to use credit cards for regular transactions. It is much simpler to use a credit card than cash or a debit card if you know how to use one properly, so you should use one everywhere you can. The credit utilization ratio, payment due dates, etc., are just a few factors you should keep in mind while you do this. The following are the major advantages of using a credit card for regular purchases:

Benefits of making daily purchases with a credit card:

Improve your savings:

Almost every credit card offers you some kind of reward on every purchase you make with your card, like reward points, Cash Back, Airmiles, etc. As a result, you may save money every time you spend it, which is not possible with cash. One of the main motivations for using credit cards is to collect reward points, thus it is advised for everyone to use their credit cards for the majority of their transactions to earn rewards.

Purchase Protection:

Purchase protection plans and special insurance coverage are included with credit cards, and you also receive an extended warranty. If your extended warranty term is still active, you can return or exchange the item even after the product’s warranty has expired. When you use cash or debit cards to make purchases, this service is not offered. By using this service, you may increase the security of your purchases.

Built your Credit Score:

Use your credit card regularly to establish a strong credit history. Your credit score will increase if you pay for everything using a credit card and make on-time payments. Your card issuer could also consider increasing your credit limit if you do this. To receive even greater discounts and deals from your card issuer, attempt to use your card more frequently (while still using it responsibly).

Things to remember:

●       The fact that should be kept in mind is that utilizing more than 30% of your overall credit limit will lower your credit score. Use your credit card to pay for everything, but try not to go over the limit.

●       People frequently overpay using credit cards because they find it simpler to purchase, but only spend what they can afford to repay later. Otherwise, you may find yourself in bad financial shape.

●       Making timely payments is critical when using a credit card since your payment history is heavily weighted when calculating your credit score. So, pay your credit card payments on time to avoid late fees and preserve a solid credit score.

Conclusion

You may have realized by now that you can use your credit card for daily purchases as long as you keep all of the appropriate precautions in mind. This can assist you in more than one way because you will simply save money and will not lose anything. Make sure your credit utilization ratio is low and you pay on schedule. Also, never spend more than you can afford because it can harm both your credit score and financial health.

Read More: Everything You Need to Know About No-Cost EMI on Credit Cards