Majority of the metropolitan population owns a credit card – it’s easy, convenient, and fast. It has many perks but it also has pits. A lot of credit card owners have been victims of maxing out their credit cards and bills that seem impossible to pay. It is true that having credit is bad, but having a credit card can be a good financial aid when it’s spent wisely.

Basicdog/Shutterstock
Avoid using credit cards on buying trendy outfits or on small indulgence

A lot of financial advisers and even banks constantly disseminate information on when to swipe credit cards. But let’s all face it, a good pair of shoes is sometimes too hard to resist. This is the best time to read and be more financially responsible. Know the things we can splurge on our credit cards without any guilt.

Credit Card Vs. Debit Card

There is a longstanding debate on which card is better to use. It really depends upon a person’s ability to draft budget and finances. A debit card allows us to spend the money we already have, while the credit card is the total opposite. We can spend money on things that we don’t have yet, but it needs to be paid depending on the card’s template. The good thing about a credit card is that we always have a backup plan or money when emergencies arise. Purchasing through credit cards can also give us rebates and other rewards that can be beneficial in the future. A credit card is a powerful tool – all we need to know is how to use it wisely.

Travel Tickets and Accommodation

interstid/Shutterstock
Get a card with special travel features to get most out of every vacation

Using a credit card in booking plane tickets, hotels, and car rentals are the wisest choice anyone could ever make. There are many credit cards with different promotions and reward system when traveling. Some of them give the owner an instant 2% rebate per flight, while some offer free concierge services. The credit card also offers travel insurance- that includes canceled flights, lost baggage, and damage in the car rental.  Depending on the card, the owner can even avail free flights or hotel stays, and even free upgrades and access to VIP services. There are bloggers who are documenting their free first-class flights only by using their accumulated rewards on credit cards.

Online Purchases

Michael Nivelet/Shutterstock
Have a safer online shopping experience through credit card payments

The world of the internet allows us to have all our purchases be delivered to our footstep. It would be even safe to say that a man can be well provided by food and clothing without stepping outside the house, all thanks to online shopping. Almost everything can be purchased online and have it delivered, whether it is food or electronics. That is why getting a credit card for these online purchases can be a better idea. Using a debit card only exposes the owner of system hacks and fraud. Payment through credit card is a safer choice since it can serve as a firewall from seller to purchaser.

Bills

Almost half of our monthly salary goes to paying our bills- phone, electric, and rental. Paying through credit card gives us a peace of mind that everything has been paid, and paying one bank will only be our main focus. There are also cards that feature a cellphone replacement to cardholders who pay their monthly bill with the card. And we can also earn money by paying bills if our card has cash back features. For those who are not very comfortable of receiving huge bank bills at the end of the month, linking the credit card to an existing debit card can also help.

Bottomline

A credit card is not a vice that we should all avoid. It is a financial supplement that can give us many perks and benefits. Being a good payer and having a stable job should be considered before signing up for an account to maximize the card’s perks. Owning a credit card may sound like living in a candy store, but it can be a risky business if it’s not being handled maturely. Always make sure to be a good spender so those bank bills won’t be a problem.