Personal Finance

Seriously, get and use a credit card. There are 5 big reasons they're better

David Beren

Published: February 24, 2025 1:14 pm

With the widespread release of credit cards in the 1950s and 1960s, they have since become ubiquitous in everyday life. According to the Federal Reserve Bank of Atlanta, 82% of American adults have a credit card, and nearly 1.3 billion Visa credit cards exist, followed by another 1.1 billion Mastercard credit cards. 

It’s important to understand just how many credit cards exist because they have become essential. As most Americans don’t have significant disposable income or savings, credit cards have become a staple way to make large purchases that can be paid off in installments, undoubtedly enabling the economy to grow over the last seven decades. 

Of course, credit cards are still seen as a way to get into debt if not used responsibly, something this Redditor posting in r/personalfinance explains perfectly.

Credit Cards Are Safe 

One thing that should immediately be screamed from the rooftops is that credit cards are one of the safest payment options. When you consider that 90% of Americans have a debit card, they may be more likely to use this as a payment option. The problem is that debit cards are not any safer than credit cards and offer far less protection. 

A debit card will immediately remove funds from your bank account, so you are making an “immediate” payment. However, the cash is gone instantly if someone hits the wrong number while ringing up a transaction. It’ll take a big lift for you to call the bank to get the situation cleared up, and in the meantime, you may not be able to pay your bills. 

Now, consider the credit card option because you have a window of opportunity to handle any fraudulent or errant transactions. A credit card doesn’t require payment immediately, so you have some time to mount a case of why a credit card should reverse a transaction in the case of fraud. The bottom line is that credit cards are much safer no matter what type of purchase you want to make. 

Establish Credit For Yourself

One of the biggest benefits of a credit card, if used responsibly, which is the big caveat here, is that it’s one of the best ways to build up your credit. Your credit history will be essential whenever you want to buy a car, rent an apartment, or get a mortgage for a home, and a credit card can help. 

As long as you make on-time credit card payments, it shows you are reliable and can pay off your purchases regularly. Even if you don’t pay off your entire balance every month, this is okay, as making regular payments is more important than the payment amount itself. 

The biggest consideration here is that you don’t miss a payment, ever, which is where the responsibility argument comes into play. The Redditor points out that the ideal way to manage your credit cards is never to charge more than you can pay off in one month, which is a good rule of thumb. 

Protect Your Purchases

One of my absolute favorite reasons for having multiple credit cards in my wallet is the idea of purchase protection. This could materialize in several ways, but they all go above and beyond what you would receive when you pay with cash or a debit card. 

For example, many credit cards will provide an additional year of warranty to a purchase, which is 100% more time than you receive from the manufacturer. In other words, if Apple gives you a one-year warranty on your next iPhone, your Visa card will provide you with a second year. 

Many credit cards also offer accidental damage coverage, which provides excellent peace of mind for anyone who accidentally damages a new computer or television within the first few months of ownership. 

Last but not least is price protection. Most retail stores have a limited price guarantee period, which a credit card will extend. Take Target, for example, as their price guarantee is only 14 days, but the Capital One Quicksilver card will give you 120 days up to $250 per item. 

Credit Card Rewards

One of the biggest reasons for having a credit card is that you can earn cash back on every purchase. For example, my Capital One Quicksilver card gives me 1.5% cash back on every purchase I make. As of mid-February 2025, I’ve already earned over $68 in rewards from my purchases, and there are still 10.5 months left in the year. 

It’s difficult to argue against the idea that you can make “free” money responsibly using a cash-back credit card. 

Of course, different cards have different rewards, so some research is required to determine which card is best for you. Still, if you spend big at the grocery store every month, an American Express card offering 6% cash back on all grocery purchases will have you see dollar signs as far as the rewards you can earn during a 12-month period. 

Cardholder Perks

Building on the idea of credit card rewards being a significant perk of using a credit card, the perks go beyond just receiving cash back in many cases. When you look at a card like the American Express Blue Cash Preferred, these perks come to life. This is the very same credit card that will offer you 6% cash back on every grocery purchase. 

However, the perks with this card go well beyond grocery shopping. One of the most significant benefits of this card is that it offers you a $84 Disney Bundle Credit every year. If you spend $9.99 monthly on a Disney Bundle subscription, American Express will give you $7 cashback if this card remains on your Disney account. 

If you are a frequent traveler, using a credit card like the Capital One Venture Rewards credit card will get you a $120 credit you can use to purchase Global Entry or TSA PreCheck. Better yet, many travel cards will give you access to travel lounges around the country to relax before you board your flight. 

Go Ahead, Use A Credit Credit

Ultimately, the benefits this Redditor points out make a compelling argument for why people should use credit cards. Of course, there is the consistent caveat that to truly enjoy all of the benefits of a credit card, you must make responsible purchases and pay off your balance as fast as possible. 

The last thing you want is to get overzealous and rack up a giant credit card bill earning 29% interest you can’t quickly pay off. However, as long as you are responsible, want to build up your credit, earn some cash back, and use a card that offers some valuable perks, grabbing a credit card can be your best financial move.