How to use your credit card to swipe your way to savings
Posted: 10/06/2012
Last Updated:
227 days ago
Every time someone asks cash or credit they're basically saying, “Would you like no free money or free money?”
The responsible use of a credit card is one of the easiest ways to get something for nothing. But before we begin, if you're the type of person who spends beyond your means or forgets to pay your bills, credit cards are not for you.
Credit card debt can cost you a ton of money over the long term. Late fees are through the roof and they can ruin your chances of getting a mortgage and a car loan.
However, if you're responsible with your finances, you should start swiping for everything.
Here's why:
1. Cash back cards like the Amex Blue Cash gives you 1 percent cash back on everything and 3 percent cash back on groceries.
2. Cards like the Chase Sapphire and the Starwood Amex give you flexible points that be used for all sorts of travel partners. A year of normal spending could get you a free trip.
But what about hackers?
Credit cards may be the safest way to pay for something. If your debit card gets stolen, the thief is able to drain your bank balance. With a credit card, it hasn't been billed to you yet.
In either situation, if you report the fraudulent charges, the company will give you your money back, but in the meantime, if it's a debit card, you've got to worry about finding the cash to pay your other bills.
Also, credit cards often offer extended warranties and return protection for your purchases.
Copyright 2012 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
