by Marianne Pelletier

Created on: January 11, 2010   Last Updated: January 12, 2010

As long as you are managing your credit card debt well, using your credit cards provide many benefits.

1. You are delaying the payment. You have your grace period after you receive your credit card statement, so you can pay for whatever you buy after you buy it. Depending on how long your grace period is, you can put off actually coming up with the cash for as much as 30 days. Some cards give you 60 days before calling your payment late. Check your own card's rules. Also, if you tuck the money into savings, and then pay the card statement on time, you are making savings interest and not paying credit interest. Manage the grace period well.

2. If you have a rewards program attached to your credit card, you are accumulating points toward gifts. Check out what the reward catalog includes before opting for a reward program card. You pay a higher annual fee.

3. By paying with credit and then paying the card, you are maintaining a high credit rating. Buy the items to have a credit card balance, and then pay them when the statement comes in.

4. Using your credit card saves you fees at your bank. Some banks charge you a fee if you use your debit card as a debit card in order to encourage consumers to use credit cards. Using your credit card defers the fee to the retail shop.

5. Your credit card statement will help you track your spending. Using a card that sends you a monthly statement allows for tracking of all expenses so that you can manage where you spend your disposable income. Using cash makes these purchases harder to manage.

6. You can catch a sale even if you don't have cash. Using your credit card allows you to catch a good sale on an item that you've been wanting to have. Be sure to pay the balance, though, so that the interest doesn't eat up your savings on the sale.

7. Your assets are protected, since credit card transactions are secured in several ways. It is safer to carry a card than cash - if you lose your card, you call the credit card company and have it canceled. If you lose your cash, you've lost.

However you use credit, make sure that you pay your balances every statement. Not doing so wipes out the credit card benefits. Careful planning with any kind of money is essential to make sure that you're getting the most for your income. You can do this.

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