An Urgent Plea: 4 Fundamental Reasons to Embrace Credit Card Usage

Recently, a Reddit user posted an urgent plea in the form of a thread in the personal finance subreddit. The poster was urging people to use credit cards as, he explained, he had encountered many people in his life who did not use cards either because they are afraid to do so or because they simply haven’t signed up for a card yet.

The Redditor firmly urged people to start embracing credit cards as a payment method and listed four key reasons why he thinks that this is by far the best payment approach for everyone. Here are his five reasons to use credit cards, along with some tips about whether or not he is correct about why cards are often the best option when you’re deciding how to pay. 

1. Credit cards are safer

The Redditor’s first point was that credit cards are a safer payment method than other alternatives because you aren’t providing direct access to your bank account. You’re using the creditor’s money, and you have time before you have to pay the bill with your own funds to address issues if there are improper charges.

The Redditor is absolutely correct that cards are safer. Credit cards also generally have $0 liability policies, so you aren’t held responsible for fraudulent charges. While debit cards do provide some protection against fraud, that protection is not as strong as the guarantees that credit card companies offer.

2. Using cards builds your credit

The poster also urged people to use credit cards because doing so helps you build your credit. If you make on-time payments, you will develop a positive credit history. That factor is the most important one in determining your score. Your credit utilization ratio and age of accounts are also helped by getting a card, keeping your total purchases below 30% of your credit limit, and keeping the card open for a long time.

While there are other ways to build credit, such as getting credit builder loans or an auto loan, accessing a credit card can be easier and, since you don’t have to pay interest if you pay your bill in full, it can be cheaper than other building credit with other kinds of debt as well.

3. Card companies provide purchase protection

Purchase protection is another huge benefit of credit cards. The Reddit poster explained that many cards offer things like extended warranty protection, accidental damage protection, and better price guarantees. These protections can help you avoid losing money when things go wrong as long as you charged the item on your credit card. Neither cash nor debit cards typically offer you any additional protection for purchases. 

Of course, not all cards offer these features. You’ll want to shop around carefully and compare card terms and conditions to make sure you are getting the best credit card to meet your needs. 

4. You can earn credit card rewards

Finally, the OP suggests that you can earn credit card rewards by using a credit card. Although some debit cards do provide rewards, the amount of the rewards is typically much smaller, and you have far fewer debit cards that offer them. By contrast, there are tons of great credit cards out there that can offer you generous points, miles, or cash back on every purchase.

You can also find specialized cards that offer you generous rewards on specific spending categories if you tend to spend a lot on one area and want to really maximize your rewards. 

All of these are very valid reasons why using a credit card is the way to go. You’ll want to be sure you’re using your cards responsibly, of course, and that you don’t carry a balance because interest rates are high. But if you stick to your budget and find the right card for your spending, you’ll end up much better off than if you use other payment approaches.

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