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Credit cards aren't for everyone. If you have a problem with impulse spending or think you may be tempted to max out your card with unnecessary purchases, then by all means, stick to cash. If there is any doubt in your mind about your ability to pay 100% of your credit card balance each month, then keep your card in a lock box and bring it out only in dire emergencies. For the rest of us, however, using a credit card provides numerous benefits.

1. No more loose change in your pocket or purse. This means no more worries about literal holes in your pocket, and no more having to take that jar of coins to the bank for deposit.

2. Forget the grocery store arithmetic. With a credit card, you can get everything on your list and not worry if you have enough cash in your wallet to cover it. You'll never need to make a hasty trip to the ATM when you pay with credit.

3. Pay bills automatically. Things like your cable bill or even tuition at some colleges and universities can be automatically charged to your credit card.

4. Effortlessly keep a record of all purchases made. Some credit card companies are even organizing your spending data for you so you can see how much you spend on groceries, entertainment, clothing, etc. When you see where your money is going, you can make decisions about how to manage it intelligently. People who pay cash for everything can easily lose track of how much they spend on, say, Chinese take out or specialty coffee. However, credit card users get a monthly reminder of their spending habits when they see several iterations of "Panda Express" or "Starbucks" showing up on their bills!

5. Shop online. Many online retailers only accept credit cards. Shopping online will save you on gas and time as well as help you find the best deals on items you need.

6. Never worry about purse-snatchers or pickpockets. If you have a wallet full of cash, and it gets stolen, then write it off as a loss. However, with a credit card, your money is safely tucked away in the bank where it belongs. If your card gets stolen, it will be only an inconvenience. You will need to call the credit card company and have the card number canceled, but the company will quickly send you a new card.

7. Make travel arrangements with ease. Most hotels will require a credit card number in order to reserve a room.

8. Earn more interest. If you use your credit card for all of your purchases, you never need to keep cash on hand. Most of your paycheck can go directly into an interest-bearing savings account. At the end of the month, you can transfer money out of savings, if necessary, in order to pay for your month's purchases.

8. Earn rewards. Clipping coupons, cutting out unnecessary purchases, and comparison shopping are all great ways to save money. Why not take the savings to the next level by using your credit card to pay for the items you absolutely must purchase anyway? If your grocery bill is, say, $100/week, then even a meager 1% cash back bonus would get you $52 each year. That's not bad, considering that $52 came from something that actually made your life more convenient!

While there are people who abuse credit cards, the truth is that, for most of us, using a credit card is a sensible way to simplify our finances, save time, and save money, too. As long as you choose a card with no annual fee and pay off the entire balance by the due date each month, your credit card will never cost you a penny. Find a card with a reward program, and you'll enjoy perks such as gift cards are airline miles just for making the everyday purchases you already make.

Learn more about this author, Raven Lebeau.
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