Credit cards often have a bad reputation in personal finance circles – they have high-interest rates, generate bad debts and are bad. Many personal finance gurus hide their cards or cancel and even cut. However, before you freeze them on an ice block, you should know that using a credit card wisely has many benefits.

Create your credit score

Regardless of your personal opinion on credit and credit cards, many major purchases you make throughout your life require good credit in order to get a loan, unless you have to pay cash. And depending on the value of your credit rating, you can even get a better rate. By using them responsibly and paying off your credit each month, you can improve credit score over time without incurring a high-interest rate.

Earn rewards

If you use a credit card and pay it monthly, get a card company that will pay you. Many cards offer rewards in the form of points for merchandise, travel or services. Some offer a percentage of their expenses in the form of cash rewards. Others may allow you to stay in hotels without paying. A great way to maximize your rewards is to choose a reward card from a store or service that you use very often. If you travel a lot, you will receive a travel reward card. If you use your card primarily for groceries and utilities, you will receive a card that can be used to get groceries or cashback for free.

Increase convenience

Using a credit card is much more convenient than using cash or debit card. Money cannot be replaced when it is lost and is also bulky. Depending on the bank or retailer, debit cards may come with transaction fees. With credit cards, you just have to carry a piece of plastic and not have to worry about extra charges unless you don’t pay your monthly balance. They are also a convenient way to organize your bill payments. Instead of keeping track of 3 or 4 different bills, you can automatically pay each bill with your credit card and then simply pay off your credit card every month.

As you can see, you don’t have to avoid credit cards if you’re willing to use them wisely and responsibly. As long as you can clear your balance every month, you can enjoy these benefits and ultimately save your money and time.