Buy everything with credit card?

Question

Is it good to buy everything with a credit card? What is the advantage? Thanks.

Answer 1

Do NOT buy everything w/ a credit card
First you have to pay the item and then pay a buttload of interest. If the card company sees that you are using your credit card alot, they will create a trap which may sound good to you, but they end up getting the money.
i.e. they raise the limit of purchases on your card.

Advantages
Reward Points but not much
Pay later
safer (some) than cash

Answer 2

You could buy everything with a credit card, but just remember you have to pay that money back to the card company when your monthly statements come in. Now you can pay the minimums, which does nothing to the balance, unless you have a 0% interest rate, or you can pay it in full. To avoid finance charges, I pay my card off in full every month. Now paying over time helps your credit better if you're trying to build it gradually, but I just want to avoid the finance charges. Just be sure that if you buy $890 in things on credit, you have the funds to foot the bill or the minimum payment.
The good advantage of a credit card is that it helps you build credit, and the higher your credit score, the better chance you have of getting a great interest rate on loans for anything. Plus it helps you save money. Like if your credit score is 680 vs. 750, a person with a 680 credit score will probably end up paying more in interest than a person with a 750 score. As I said, the higher the score, the more money you save.
For another example: A person with a 640 score, who is getting a loan for $10,000 will probably pay back almost $11,000 due to the interest rate and the amount of the payment and the length of the loan.
Now a person with a 755 score, who is getting a loan for the same amount, will most likely only pay $10,500-$10,650 back depending on the length of the loan and the payments made.
So, as you can see, a person whose credit score is higher saves hundreds, even thousands of dollars.
That is a great advantage of great credit. Hope that helped! Sorry so lengthy.

Answer 3

Yes, do it. As long as you don't carry balances, the benefits are tremendous. With some cards offering 3-5% back, why wouldn't you? It's an extremely easy way to make a few extra hundred dollars a year. Plus, many credit cards offer warranty extension, price protection, and other services with no annual fee.

If you think you can use your credit card like an adult and not run up balances like a drunk teenager, then by all means do it. You'll quickly realize that every bill and purchase, from cell phone to cable to groceries, is another chance to rack up free money or merchandise.

To be truly skillful at this, you will need to carry more than one card. Some cards offer better rebates on gas, while others offer better rebates on groceries or electronics. But if you are just starting out, begin with one card that you like the cash back or rebates on. Then, as you progress, you'll see where you can leverage your spending habits against a card's rebate.

This is the one true way to trounce the credit card companies.

Answer 4

Advantages: If you pick a card where you get either cash back or points (airline or hotel or something else) you can then get the cash or points.

HUGE disadvantages: You will spend more than if you paid in cash. You are more likely to fall behind financially and get in real financial trouble.

Do NOT pay for everything in credit cards unless you pay it off in full EVERY month. The second you can't pay it in full it is time to get away from using the credit card.

Good Luck!

Answer 5

You can easily to increase your credit score by paying on time. No need to carry so much cash. Spend more than you make and pay later. Save money not to buy stamp, you can make payment through on line. You can transfer your credit debt to a lower interest rate loan.

Answer 6

always keep one card for emergencies . For the homeowner
that would be compressor failure in the air conditoner
transmission failure in the car
sudden death of the riding lawn mower
trips to the dentist or oral surgeon
sewer backing up into home(rotorooter)
unexpected need for legal representation
all four tires need replacing at one time.
never run up the card more than half of what your bank account balance has in it.
Never pay recurring bills with a credit card. rather always with a
plastic check (debit)card

Answer 7

That only works for the very wealthy.

You put all of your purchases on your card and keep your money in your interest bearing checking account. You pay the card in full by the due date from your checking account.

Answer 8

it is good for your credit as long as you have the money in the bank to pay for it. also you can get the rewards your card may offer.