3 REASONS YOU SHOULD PUT ALL YOUR EXPENSES ON A CREDIT CARD
By MacKenzy Pierre
The estimated reading time for this post is 172 seconds
- Put all expenses on credit cards and turn your credit card spending into a short-term no-interest loan.
- You can earn some serious cash while enjoying continuous short-term loans by putting all your expenses on one credit card.
- We are somewhat a semi cashless society. You can’t pay for your Netflix’s subscription, rent a car, or place an order online with cash
Put all expenses on credit cards and turn your credit card spending into continuous short-term loans. One of the best arguments against using credit cards is people who use them spend more on average than those who use money. Higher debt usage combined with high-interest rate credit cards is a recipe for financial disaster. However, those two reasons mentioned above are not strong enough for you to cut credit cards out of your financial sphere altogether.
With a well-thought-out financial budget, you should put all your discretionary and non-discretionary expenses on one credit card. Below are the three financial reasons you should put all expenses on credit cards:
No Interest Short-term Loans
To turn your credit card spending into continuous short-term no-interest loans, you need to pay the balance in full each month. Maintaining a balance, making the minimum payment, and paying late are what make credit cards such a bad financial product. A personal cash flow statement, which details cash inflows and outflows, will help reduce the need to overspend. If you budget 150 dollars per week on groceries and be disciplined enough to stick to it, you can reap all the excellent benefits of credit cards. You can put the groceries, auto insurance, and utilities on your chosen credit card and pay the credit card balance in full each billing cycle.
Here’s how you end up getting a short-term no-interest loan in the process.
If your closing date were on the 17th of December, the credit card company would give you until about the 15th of January to pay that balance in full with no interest accrued. That’s a 4-week loan with no interest. Also, you pay no financing charges on all transactions made from December 18th through January 17th until February 15th. If you time spending on big-ticket items accordingly, you can end up having a nearly 2-month no-interest loan from your credit card company.
Rewards: Cash Back, Miles and Points
You can earn some serious cash while enjoying continuous short-term loans. Let’s say you sign up for the Capital One ‘s 1.5 percent Cashback Everyday Card and your total discretionary and non-discretionary expenses are about 3,000 dollars per month. You can earn up to $540 ($3,000×12) x 0.015) every year. That amount is no chump change; it is enough for 6-month car insurance premiums in many states. Here’s the list of best cashback credit cards
Security
We are somewhat a semi cashless society. You can’t pay for your Netflix’s subscription, rent a car, or place an order online with cash.
Moreover, using a credit card is the best way to protect yourself from fraud. Many credit card companies can issue a virtual credit card number, which is different from your main credit card number. That virtual number adds an extra layer of security. Because your debit card links to your checking account, it might take the banks months to conduct their investigation and refund your money in case of fraud.
As long as you use them wisely, you can reap tremendous benefits from using credit cards.
Senior Accounting & Finance Professional|Lifehacker|Amateur Oenophile
RELATED ARTICLES
Zero-Based Budgeting: A Guide on Tracking Every Dollar to Maximize Savings
The estimated reading time for this post is 324 seconds Introduction: Why Zero-Based Budgeting? Have you ever gotten to the end of the month and wondered where all your money went? You’re not alone. Most people think of budgeting as...
10 Credit Cards with the Highest Annual Percentage Rates (APR) on Purchases and Cash Advances
The estimated reading time for this post is 362 seconds When you’re on the hunt for a credit card, there are many things to consider—the rewards program, perks, fees, and perhaps most importantly, the Annual Percentage Rate (APR). If you’re...
1 Comment
Leave Comment
Cancel reply
2025 401(k) limit: $23,500; IRA limit unchanged
US Economy Update
Zero-Based Budgeting: A Guide on Tracking Every Dollar to Maximize Savings
Gig Economy
American Middle Class / Nov 02, 2024
2025 401(k) limit: $23,500; IRA limit unchanged
The estimated reading time for this post is 191 seconds Maximize Your Retirement Savings in 2024: Key IRS Adjustments to Know Saving for retirement just got...
By Article Posted by Staff Contributor
American Middle Class / Oct 30, 2024
US Economy Update
The estimated reading time for this post is 139 seconds The Bureau of Economic Analysis (BEA) report indicates solid economic growth in the third quarter of...
By FMC Editorial Team
American Middle Class / Oct 29, 2024
Zero-Based Budgeting: A Guide on Tracking Every Dollar to Maximize Savings
The estimated reading time for this post is 324 seconds Introduction: Why Zero-Based Budgeting? Have you ever gotten to the end of the month and wondered...
By Article Posted by Staff Contributor
American Middle Class / Oct 26, 2024
10 Credit Cards with the Highest Annual Percentage Rates (APR) on Purchases and Cash Advances
The estimated reading time for this post is 362 seconds When you’re on the hunt for a credit card, there are many things to consider—the rewards...
By Article Posted by Staff Contributor
American Middle Class / Oct 18, 2024
The Hidden Costs of Financial Procrastination
The estimated reading time for this post is 354 seconds You might think delaying your financial decisions isn’t a big deal. But let me tell you,...
By Article Posted by Staff Contributor
American Middle Class / Oct 17, 2024
What to Do If You Are Underwater on Your Car Loan
The estimated reading time for this post is 386 seconds Being underwater on your car loan can feel like you’re sinking financially, but you’re not alone....
By MacKenzy Pierre
American Middle Class / Oct 16, 2024
Household Debt Is Rising: What This Means for You
The estimated reading time for this post is 255 seconds In the Federal Reserve Bank of New York’s second quarter of 2024, household debt in the...
By FMC Editorial Team
American Middle Class / Oct 15, 2024
A Plan to Grow Your FICO Score
The estimated reading time for this post is 290 seconds You can’t build a solid financial future if your FICO score is holding you back. It’s...
By Article Posted by Staff Contributor
American Middle Class / Oct 14, 2024
Is Bankruptcy the Right Move for You?
The estimated reading time for this post is 439 seconds Bankruptcy is often considered a last resort, a drastic measure for those struggling under the weight...
By Article Posted by Staff Contributor
American Middle Class / Oct 13, 2024
What Matters to Middle-Class Voters
The estimated reading time for this post is 572 seconds Introduction Middle-class voters are the backbone of the American electorate. Their votes decide elections, and their...
By MacKenzy Pierre
Latest Reviews
American Middle Class / Nov 02, 2024
2025 401(k) limit: $23,500; IRA limit unchanged
The estimated reading time for this post is 191 seconds Maximize Your Retirement Savings in...
American Middle Class / Oct 30, 2024
US Economy Update
The estimated reading time for this post is 139 seconds The Bureau of Economic Analysis...
American Middle Class / Oct 29, 2024
Zero-Based Budgeting: A Guide on Tracking Every Dollar to Maximize Savings
The estimated reading time for this post is 324 seconds Introduction: Why Zero-Based Budgeting? Have...
Pingback: Large Credit Limits for Personal Financial Planning - FMC