If you have a credit card, of course you want to use it wisely to protect your finances. That’s why it’s always a good idea to treat paying with a credit card the same way that you would treat paying with cash. Still, there are some wise ways you can use a credit card that you may not be aware of.

To Pay Down Debt

Many people associate credit cards with getting into debt, but this doesn’t have to be the case. In some instances, it might actually make sense to use a credit card to pay down debt. This is especially true if you have debt with a high-interest rate and a credit card with a lower interest rate. You can save yourself a large chunk of change in interest alone by transferring your debt to a credit card with a lower rate.

To Earn Rewards

When used wisely, credit cards can also be used to rack up rewards and cash back. While the specifics can vary from one credit card company to the next, most credit cards include some sort of rewards system that can really add up. If you have a travel credit card, for example, you might be able to accumulate airline miles for each dollar you spend. Other cards may allow you to simply earn cash back that you can apply to your account and reduce your total balance.

For Peace of Mind

When it comes to making payments, credit cards can give you some added security and peace of mind compared to that of using cash or even a debit card. If your credit card is lost or stolen, or if your credit card information is compromised, most credit card companies will allow you to easily dispute and dismiss any fraudulent charges to your account so that you’re not left on the hook for them.

To Build Credit Strategically

When you use your credit card responsibly, you can actually build your credit and boost your credit score gradually. The key, in most cases, is to be mindful of your credit card utilization and keep it ideally around 30% each month. From there, be sure to treat your card as cash; this means being able to pay the balance off in full each month. These are the best ways to use your credit card to build your credit score over time.

Looking to Fix Your Credit?

As you can see, there are many smart ways to use your credit card that you may have never even considered. At the end of the day, if you can use your credit card responsibly, you can enjoy many benefits that range from cashback/rewards to lower debt overall.


Looking for more help when it comes to your credit and finances? Our credit repair experts are always here to help. Get in touch with our friendly team today to find out more and schedule your free consultation and credit coaching plan.