Should I use my credit card for everything? 5 reasons to consider

Credit cards are a convenient way to manage your expenses. Many cards also offer valuable rewards, which can help you earn while you spend. Considering their many benefits, you may be wondering if you should use your credit card for everything.

Some people do and pay off the balance each month. However, the strategy isn't ideal for everyone. Whether it makes sense for you depends on your financial situation and lifestyle. If you are thinking about using your credit card for everything or at least more often, it's important to manage your balance responsibly and stick to a budget to avoid falling into too much debt. Let's look at five reasons why you may want to consider using your credit card for everything.

1. Credit cards are a safe and secure payment method

Credit cards are much safer than carrying cash. If your wallet is stolen, you probably won't get your cash back. However, if someone steals your credit card, the card issuer typically won't hold you responsible for any unauthorized charges. Many credit cards also protect your account with encryption, real-time transaction monitoring and fraud alerts to notify you of suspicious activity. These security features help you quickly detect fraud so you can take quick action.

While debit cards are safe to use, credit cards often have stronger fraud protections. If your debit card is stolen and used for unauthorized purchases, the fraud resolution process often takes longer because the money has already left your account. With a credit card, you don't have to pay for a disputed charge while it's being investigated.

2. Credit cards can help you build and maintain credit

Having a strong credit profile is essential. Your credit will be checked when you apply for jobs, rent an apartment, obtain utilities or apply for loans. If you're looking to improve your credit, make regular, on-time credit card payments and keep your balance at less than 30% of your credit limit.

How well you manage your credit card tells lenders how reliable you will be as a borrower. A solid history of on-time payments may increase your chances of being approved for new credit. Keeping your balance low also shows that you don't rely too much on credit. Lenders view these as signs of financial stability, which may help you qualify for a mortgage or car loan.

3. Credit cards help you easily track your spending

Following a budget helps you save for goals and avoid overspending. With a credit card, you can easily see your purchases online in real time. This can help you spot things you need to cut back on or identify spending trends that are slowing your savings progress.

Most credit cards make it very easy to see where your money is going each month. They provide detailed monthly statements and online reports that you can access anytime online or through an app to help you stay organized. They even show you how much you're spending in certain categories, like groceries, gas, dining and entertainment.

Let's say you are falling behind on a savings goal. You could look up your recent credit card purchases online and review your spending. This could help you see that you're dining out more than usual or spending more than you thought on entertainment. You can then adjust your budget to help you get back on track.

4. Credit cards offer rewards and bonuses

One of the biggest benefits of using a credit card is the opportunity to earn valuable rewards and bonuses. Since you're already spending on everyday essentials, you might as well earn something back in return.

Not all credit cards offer rewards, and the type you can earn depends on the card issuer. One of the most common is earning cash back on your purchases. With this bonus, you typically earn 1% to 2% when you use your credit card on certain purchases, like gas or groceries. Some cards offer cash back on all purchases. The money earned is typically redeemed through gift cards or by receiving a credit on your statement balance.

Travel reward points are another popular option. With this bonus, you earn points that can be redeemed for flights, hotels and rental cars. You may also be able to trade your points for merchandise. Some people use their travel reward points to pay for part or all of their vacations.

Although credit card rewards can be appealing, it's not a good idea to open new cards just for the bonus. Having too many new credit accounts in a short time can damage your credit. The additional credit could also tempt you to overspend.

5. Credit cards offer additional travel and purchase benefits

In addition to offering rewards, many credit cards include additional benefits that can come in handy or help you save. For example, Mastercard and Visa are accepted almost everywhere, which makes them especially useful for international travel. Because you won't have to carry as much foreign currency, you won't have to exchange large amounts of cash. Many credit cards also waive foreign transaction fees.

Some credit cards also offer travel insurance, which may cover a canceled a trip, lost luggage or emergency assistance. These protections can be an important lifeline if something happens when you are far from home.

Additional benefits may include purchase protection and extended warranties. Purchase protection covers damage or theft for a specific period after buying an item. An extended warranty adds extra time to the manufacturer's original warranty.

When you should not use your credit card

If you are still wondering if you should use your credit card for everything, keep in mind they aren't ideal for all situations. For example, some merchants charge a convenience fee when you pay with a credit card. These fees can often be avoided by paying with cash.

If you are having trouble making your payments on time or if you are struggling with credit card debt, continued credit card use could make it harder to get your finances under control. Interest charges will cause your balance to grow, and if you miss payments, you'll be charged late payment fees.

Responsible credit card use is essential if you want to use it to build credit. Late or missed payments or carrying a high balance could harm your credit score. That's why it's important to make on-time payments every month, keep your balance low and stick to a budget.

Explore the benefits of a Citizens credit card

Credit cards offer many advantages that cash or debit cards can't match. They can help you build your credit, protect you from fraud and more.

If you're looking to open a new credit card, check out the options from Citizens. Whether you want to build credit, take advantage of generous rewards or just want to simplify your daily spending, Citizens offers flexible credit cards that can help you reach your goals.