Credit cards aren’t all bad

I’ve read a lot of budgeting posts which say that credit cards are bad, and that cash is the only way to go.

I disagree. I use my credit card to budget for the month, and I get frequent flyer points as I go.

I always pay my credit card off in full though when it is due. And I think that’s where the problem lies. If you only pay off the minimum, you can get into serious debt.

I buy everything on credit. Even my $4 coffee in the morning. I’ve even been known to put $1.50 on my credit card.

I have a limit each month and if I’m getting close to that limit, I wait for the next month before making any purchases that can be put off.

By putting things on credit, I can keep my money in the bank for an extra month, earning me interest. Better in my pocket than in the bank’s!

And because I always pay off my card every month I have a really good credit rating, which meant I could get a mortgage without any problems. Credit cards aren’t all bad.

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6 Comments

Filed under Budget, Frugal, Saving money

6 responses to “Credit cards aren’t all bad

  1. Being June

    Couldn’t agree more. We do the same thing, but we use a BP gas card and get discounts on fuel. It takes some discipline to pay off the balance every month, but I think it’s totally worth it for the reasons you layed out here. Great post!

  2. I do the same thing! I’m still very young and don’t have a long credit history, I don’t use my credit card for everything, but mostly for recurring bills so that I have a very good idea of what the balance should be at the end of the month. It’s just to keep myself in check, since it’s appealing to put off paying for something, and I don’t want to end up in debt. Nice post, good to see someone talking about how using credit can be an advantage!

  3. I do the same. I try to use my CC for as many purchases as I can so I earn points. I always budget for my purchases and don’t count the CC as extra money. End of the month – pay CC in full. No interest charged, no debt. Bonus – I have earned hundreds in gift cards from a major department store which is linked with the CC. Used some of the cards as Christmas and birthday presents, so actually saved money!

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