Using Credit Cards…..Good or Bad?

Credit cards...Good or bad?

When you think about getting out of debt and creating a budget, credit cards are not the first thing that comes to mind. Many people will say to cut up your cards or freeze them so you can’t use them but I am thinking differently. OK…Ok….before you say “What is this chic talking about” hear me out.

Using credit cards can be a great way to save. I’m not talking about just opening up any credit card or department store card but ones that offer rewards for using their cards. Reward cards are a great way to get FREE gift cards, vacations, hotel rooms etc. This will only work if you use it correctly.

Instead of paying cash for gas, groceries, or even your monthly bills, use your rewards card to accumulate points that can be redeemed for cash or gift cards. Make sure whatever you are charging on your credit card, you have the cash to cover the bill at the end of the month. Do not purchase anything that you cannot pay off at the end of the month.

I do have several rewards cards that I use. One card is from my bank and it is so convenient because I can just transfer the money straight from my bank account to my credit card bill through bill pay. I have redeemed gift cards to the movies (which is great for date night or going to the movies with the kids) and even redeemed my point for cash. Check your rewards because with my card you get a better return when you redeem your points for gift cards then cash.  You can use your points towards paying off your credit card bill too.

I have another credit card that gives me points to use towards my Amazon purchases.  I opened this one up just because of that perk.  I LOVE shopping from Amazon and now I accumulate points, when shopping anywhere, that allows me to get free items from Amazon. I usually purchase items for the home like appliances, necessities and things for my planner.

This may not work for everyone so please only try it if you know you won’t spend beyond your means. The goal here is to get free items that will save you money from buying things you would normally have to buy or to save you money and be able to go out and enjoy yourself for free. You can save all your points and at the end of the year you can use it to pay for different items for your family vacation.

When credit cards are used correctly they can be very beneficial and actually save you money in the long run.

Disclaimer: I am not a financial person nor am I telling you what you should do. I am only sharing with you what works for me and you can decide if you want to try it or not.