Advertising
Advertising

10 Reasons Why You Should Be Using Your Credit Card For Everything

10 Reasons Why You Should Be Using Your Credit Card For Everything

Credit cards aren’t just used to pay off major purchases anymore. You might feel silly using a credit card for a small purchase, but there are benefits to this transaction! Why else are companies putting credit card slots on drink machines? You should be using your credit card for everything—and here are ten reasons why.

1. It builds a great credit rating.

Buying things with your credit card and then paying them off each month will help you build credit. It will either help you establish a good credit score from the start, or rebuild a good credit score if you’ve had problems in the past. Make sure you’re still spending within your limit, and can afford to pay the bill off in full each month so the interest doesn’t add up and make your bill exponentially larger.

2. It’s quick and easy.

No more hunting for exact change! Credit cards make checkout easy. Just swipe your card, sign your name, and you’re done! Now with smartphone apps, you can pay with a pass on your phone. There are also cards that allow you to just “tap” the checkout machine, and the money is automatically paid!

Advertising

3. It’s great for accounting records.

It’s hard to keep up with receipts, but if you’re sticking to a budget, doing your own taxes, or just making sure you don’t get overcharged for anything, then you need to keep track of those slips of paper. If you use your credit card, however, you have a built-in list of everything you’ve purchased. You can sign on to your bank account online and see what you’ve spent over the past month to make sure you’re still on budget. You can double-check your bank balance and make sure there was no unauthorized spending. You can do all of that—and you don’t have to keep track of anything!

4. There’s no need for cash.

Forget trying to find an ATM, or paying ridiculous fees to access your own money! With a credit card, there’s no need to carry cash. Most companies have put credit card slots on drink and other vending machines, so you won’t even have to scrounge for change! This is also a security issue, because if you get robbed, you won’t be losing cash that will be unaccountable when you make a police report.

Advertising

cokecredit

    5. It has automated billing.

    When you get your credit card, sign up for automated billing! This means your utility bill, cell phone bill, and anything else you pay monthly can be paid automatically by your credit card. It’s a load off your mind, because you don’t have to remember countless due dates, or try to think back if you paid a certain bill or not. Then you’ll just have one date to remember—the due date for your credit card!

    6. You’re establishing good payment habits.

    Paying off your credit card balance every month will help you establish good payment habits. You’ll be paying bills on time with automated billing, and paying your balance each month, whether it’s paying it in full or paying enough to keep the interest down.

    7. You earn frequent flyer miles.

    Using your credit card will earn you all sorts of perks. Make sure you look into your specific card and see what benefits you can get. If you travel a lot, each credit card purchase will earn you frequent flyer miles, or free stays in hotels. You can also get cash back or discounts on major payments.

    Advertising

    8. You can get purchase protection.

    Buying with a credit card means there’s a potential for purchase protection. Your credit card company will handle disputes for you, so if a store won’t take back a defective product, there’s a good chance your credit card company will either fight for you, or reimburse you. There’s also a built-in protection against card theft—most credit card companies will call you when they see suspicious activity. Some even block the card so the purchase won’t go through without your authorization, or reimburse you for purchases that went through with a stolen card.

    9. You get low-cost loans.

    You don’t have enough cash for groceries and bills this week, but you need them both. Use your credit card! Credit cards are like low-cost loans, because you can buy something now that you don’t have cash for, and pay it back at the end of the month when your credit card bill is due. Just make sure you know your budget and don’t go overboard by buying things you’re unable to pay back.

    10. You have a buffer for emergencies.

    Just like using your credit card as a loan system, it’s great as a buffer for emergencies. Things will happen that demand your financial attention, like your heater going out in winter, or your fridge breaking down. Can you afford to buy either of those major appliances in cash? What about hospital bills you didn’t expect? Most people don’t have that kind of cash on hand, but again, with a credit card, you can take out a type of loan. Buy what you need and start to pay it off over time on your credit card.

    Advertising

    Featured photo credit: mueritz via flickr.com

    More by this author

    16 Productivity Secrets of Highly Successful People Revealed Why You Should Keep A Journal And How To Get Started 10 Incredible Benefits of Cuddling That Make You Want to Cuddle Now 15 Differences Between the Boy you Date and the Man you Marry 10 Signs That You’re Ready For Marriage

    Trending in Money

    1 How Personal Finance Software Helps You Get More Out of Your Money 2 The Best Ways to Save Money Even Impulsive Spenders Can Get Behind 3 How to Answer the Tough Question: What are Your Salary Requirements? 4 The Definitive Guide to Get Out of Debt Fast (And Forever) 5 35 Real Ways to Actually Make Money Online

    Read Next

    Advertising
    Advertising
    Advertising

    Last Updated on January 2, 2019

    How Personal Finance Software Helps You Get More Out of Your Money

    How Personal Finance Software Helps You Get More Out of Your Money

    Do you know what mental health experts point to as the biggest cause of stress in the United States today? If you said “money,” then ding, ding, we have a winner!

    Three out of four adults today report feeling stressed out about money at least part of the time. People are either worried about not having enough money or whether they’re putting the money they do have to use in the best possible way.

    Your money is either in charge of you or you’re in charge of it, there’s no middle ground. Using some type of personal finance software can help alleviate some of that money stress and better allow you to manage your money effectively. Without it, you may just be setting yourself up for constant financial worry. Life is already tough enough and there’s no need to make it more difficult by simply hoping your money issues will all work out in your favor. Hint: they won’t.

    This guide will help you to understand how personal finance software can better assist with both accomplishing long term financial goals and managing day-to-day aspects of life.

    Whether it’s tracking the savings plan for your child’s college fund or making sure you won’t be in the red with the month’s grocery budget, personal finance software keeps all this information in one convenient place.

    What Exactly is Personal Finance Software?

    Think of it like the dashboard in your car. You have a speedometer to tell you how fast you’re going, an odometer to tell you how far you’ve traveled, and then other gauges to tell you things like how much gas is in the tank and your engine temperature. Personal finance software is essentially the same thing for your money.

    When you install this software on your computer, tablet, or smartphone, it helps to track your money — how much is going in, how much is going out, and its growth. Most personal finance software programs will display your budget, spending, investments, bills, savings accounts, and even retirement plans, levels of debt, and credit score.

    Advertising

    How It Leads to Financial Improvement

    It shouldn’t come as a surprise, but people who regularly monitor their finances end up wealthier than those who don’t. When you were a kid, keeping track of all of your money in a porcelain piggy bank was pretty easy. As we get older, though, our money becomes spread out across things like car payments, mortgages, retirement funds, taxes, and other investments and debts. All of these things make keeping track of our money a lot more complicated.

    Some types of personal finance software can help make things a little less complicated, setting you up to meet financial goals and taking away some of the stress associated with money.

    Even if you already have a Certified Financial Planner (CFP) some type of personal finance software can be of great benefit. Whereas CFPs focus on the big picture of your money, they don’t handle the day-to-day aspects that determine your overall financial health.

    It’s also not nearly as complicated as you might think and can take out a lot of the tedium that comes with doing everything on an Excel spreadsheet or with a pad and pencil.

    Types of Personal Finance Software

    When it comes to personal finance software, it generally fits into two categories: tax preparation and money management.

    Tax preparation software such as Turbo Tax and H&R Block’s software can help with everything from filing income taxes to IRS rules and regulations and even estate plans. Plus, there’s the benefit of filing online and getting your refund check a lot faster than if you were to mail off your forms after waiting in line at the post office.

    For the purpose of this article, however, will be focusing more on the personal finance software that aids with money management.

    Advertising

    Money management personal finance software will help you to see the health of your cash flow, pay down debt, forecast for expenses and savings, track investments, pay bills, and do a host of other things that 30 years ago would have practically required a team of accountants.

    When to Use Personal Finance Software

    So far we’ve gone over what exactly personal finance software is and how it can be a benefit to your money. The next logical step in this whole equation is determining when it should be used and how is the best way to go about getting started using it.

    Below are four of the most common and practical ways to use personal finance software. If all or any of these apply to you and your money, then downloading some type of personal finance software is going to be a smart move.

    1. You Have Multiple Accounts

    There’s a good chance that when it comes to your money, it’s in more than one place. Sure, you probably have a checking account, but you may also have a savings account, money market account, and retirement accounts such as an IRA or 401k.

    If you’re like the average American, you probably have two to three credit cards as well. Fifty percent of Americans also don’t have loyalty to just one bank and spread their money across multiple banks.

    Rather than spending hours typing in every detail of every account you have into a spreadsheet, many programs allow you to easily import your account information. This will help to eliminate any mistakes and give you a bird’s eye view of everything at once.

    2. You Want to Automate Some or All of Your Payments

    Please don’t say that you’re still writing out paper checks and dropping each bill in the mailbox. While it’s noble that you’re doing your part to keep postal workers employed, we’re 18 years into the 21st century and you can literally pay every bill online now.

    Advertising

    There’s no need to log into every account you have and type in your routing number either.

    With personal finance software you can schedule automatic payments and transfers between all of your imported accounts. Automatic transfers will help to make sure you have the necessary funds in the right account to ensure all bills are paid on the appropriate date. Late fees are annoying and do nothing but cost you money. It’s time that you said goodbye to them once and for all.

    3. You Need to Streamline Your Budget

    Perhaps the best feature of personal finance software is that it allows you track everything going in and out of your virtual wallet.

    Nearly every brand of personal finance software out there has easy-to-read graphs and charts that allow you track every cent you spend or earn, should you choose. You might be pretty amazed when you see just how much you spent on eating out last month or if you splurged a little more than you should have on Christmas gifts last year.

    Every successful business on the planet has a budget and using personal finance software can help you trim the fat on your spending in ways that affect your everyday life.

    4. You Have Specific Goals to Meet

    Maybe it’s paying off debt or saving for up something like a European vacation. Whatever your financial goal is, whether it’s long-term or short-term, personal finance software programs are one of the savviest ways to go about reaching those goals.

    You can do everything from set spending alerts to notify you when you’re over budget to automating what percentage of your paycheck goes to things like retirement investments. The personal finance software that you choose should show you exactly how close you are to hitting those goals at any given time.

    Advertising

    How to Get Started

    From AceMoney to Mint and Quicken, there ’s no shortage of personal finance software apps out there. Many of these programs are free to download and will allow you to pay bills, invest, monitor your net worth and credit profile, and even get a loan with the swipe of a finger.

    Other programs may only offer you limited services and will require a one-time fee or subscription to unlock all that they offer. These fees can often vary from as little as two dollars to 50 bucks a month.

    It’s best to start off with the free version and then gauge whether you’re able to accomplish everything you’d like or if it’s worth exploring one of the paid options. Often times the subscription programs come with assistance from financial planning and investment experts — so that can be a real benefit.

    When deciding which personal finance software program to use, it’s also important to look at how many accounts you wish to monitor. Certain programs limit the number of accounts you can add. Be sure that if you have checking, credit card, and investment accounts to monitor, that you choose a service that can monitor them all.

    Finally, when looking around for the right personal finance software that meets your needs, make sure that you’re comfortable with the program’s interface. It shouldn’t be expected that you recognize every single feature instantly, but if the features don’t seem readable and manageable to you, then you’re not as likely to use it and get the full benefits.

    Final Thoughts

    Personal finance software can go a long way in helping you to take control of your money and meeting your financial goals. It’s important to note, however, that some focus more on budgeting and expense tracking while others prioritize investing portfolios and income taxes. Explore several different programs and read reviews to find the one that’s right for you.

    In this day and age, managing one’s personal finances in a secure manner that allows the user to have a real-time visual representation of their money is easier than ever before. With the numerous applications that are out there — both free and subscription-based — there’s no reason that every person can’t take control of their money and ensure they’re making smart money moves.

    Featured photo credit: rawpixel via unsplash.com

    Read Next