So I got a Credit Card that awards one airline mile for every dollar I spend. I know most people recommend cutting all credit cards up to avoid high interest on any consumer debt, but I am quite a fan of my card. I have never needed to use the “credit” aspect of my credit card. I treat it like a debit card and pay the full balance every month. If I don’t have the money, I don’t buy it. There are two BIG advantages to using my credit card for EVERY purchase I make.
The first is that I get one airline mile for every one dollar I spend. I put everything from a $1 pack of gum to my $1,000 laptop on my credit card. Just by using my credit (instead of debit) card for ALL my purchases I basically rack up enough points to earn a free flight every year. I don’t know about you, but I’ll take a free ticket any day!
The second advantage to using my credit card is basically free money for one month. This allows me to make purchases before my paycheck gets auto-deposited in to my account. For example, I bought my laptop for $1,000 dollars on the 10th of Jan. At that time I only had $900 saved for my new laptop, but since I charged it to my credit card I was able to walk out the door with it before I had the full $1K saved. I got my paycheck two weeks later and took my “$100 a month laptop fund” added that to the $900 I had already saved and paid off my credit card balance in full. The laptop didn’t cost me any more then it would have if I used my debit card, but I was able to get it two weeks earlier.
I’m fully aware of the dangers of owning a credit card. It takes discipline, but as long as you don’t spend money you don’t have, I’m convinced that credit cards are an asset to my financial success. I have plenty more to say about credit cards and I would love to hear what you all think about them. Keep looking for more of my financial habits and advice.
What do you think?