Credit cards....why to use them

[sarge12]

When you make a purchase at a store for any item with a CC, the retailer is charged a fee by the CC companies...usually about 3%. In order to be profitable the retailer must charge more for goods and services to cover these expenses. If you pay cash, you ar actually paying for others to recieve the rewards, convenience, and extended warranties and purchace protection that comes with most CC transactions. If you pay your balance in full every single month, the interest rate on a CC is 0% on most cards. Use of a CC  with rewards is the only way we as consumers can actually get most of the money back that we are already are paying for in the increased prices the retailer charges everyone to cover their CC fees. If you pay balance in full, there is no downside. If you are one of these people who always pay with cash or check....then you are helping to pay my CC rewards, Thank You!!!!!

[Mattopotamus]

rewards are nice, but even if there were no rewards I would still use my CC.  Unless you have a zillion dollars, credit is very very important.

[Anonymous]

Having a zillion dollars or 10, you shouldn't use credit cards differently really. They are beneficial primarily for rewards and fraud protection in my view.

Both of those can be appreciated by all income levels.

[redpat]

Yeah right, if there weren't credit cards retailers' sales would be in the toilet, lol.

It's all baked in the cake so don't worry about the fees.

[GalaxyStars]

My main use of Credit Cards would be fraud protection.

Now if you have Bank Of America, or a bank that refunds you upfront for checking or debit card fraud then you might be less effected.

I've had 3 banks so far that do it differently, U.S. Bank, Sun Trust, and Regions. And I've defintely had fraud occur 2-3 times in my lifetime.

So once fraud happened and my account was wiped out. I had to wait a 10 day investigation process until funds were replaced, my landlord nor car note takes Credit Cards, so basically im cash strapped until I get my funds back. Plus you build credit, and earn rewards on some cards, so it's a win win.

[Anonymous]

Credit cards offer fraud protection, rewards and a potentially a good FICO score.  It is great to be able to set up utilities, etc to go straight to a credit card then get a reward from it. Just my take.

[mongstradamus]

I think the better question would be why would you not use them. The only instance where i wouldn't use a cc is if i were to goto an restuarant or foreign country that is cash only. Every other instance its CC all the way, extended warranty + rewards are reason enough for me

[Anonymous]

Rewards are a great reason to use credit cards, but a lot of people on this site chase rewards and spend more money in the attempts to get rewards.  If you spend more money than you would simply because you own a credit card (as most Americans do) then it's a net loss.   

Also some people have what seems like an addiction to applying for credit cards, getting obscene card limits, etc.  This is irresponsible behavior, unneccessary in the vast majority of cases, and has the potential to have way more negatives than positives. 

[Anonymous]

A few years ago, I told myself and family that I will never use credit cards. In my small mind I had no knowledge that you could earn rewards and pay it off in full. I just assumed credit cards was debt you paid month to month, neverending. That's how I used it back in my college years. 

Here I am with credit cards, no balance on any of them but I used them to charge everything. I have a variety of cards for more options. I like it. We now do everything with our cards. I also like the benefits the cards gives me.

[jim44]

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@sarge12 wrote:

When you make a purchase at a store for any item with a CC, the retailer is charged a fee by the CC companies...usually about 3%. In order to be profitable the retailer must charge more for goods and services to cover these expenses. If you pay cash, you ar actually paying for others to recieve the rewards, convenience, and extended warranties and purchace protection that comes with most CC transactions. If you pay your balance in full every single month, the interest rate on a CC is 0% on most cards. Use of a CC  with rewards is the only way we as consumers can actually get most of the money back that we are already are paying for in the increased prices the retailer charges everyone to cover their CC fees. If you pay balance in full, there is no downside. If you are one of these people who always pay with cash or check....then you are helping to pay my CC rewards, Thank You!!!!!

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To me it's all in the mix.  swipe fees are just a small small part of product pricing it makes hardly a dent.  Think about all the perks you have with a Signature Visa vs a regular one.  Who pays for these perks? us regular card holders?