Some people say that to avoid debt, you should pay cash for everything. This may be right for some, but for others, cash burns a hole in their pockets. If they have cash, they spend it. Credit cards can be great tools for managing your finances and putting you in good credit standing if used correctly. As you know, if you pay the balance by the due date every month, credit card companies don’t charge you anything (unless, of course, you have a credit card with an annual fee).
Here are some benefits of credit cards and tips for using them wisely:

Build your credit score with a credit card.It’s important to build the right credit habits to reach and maintain a good credit score. Make small purchases on your card every month and pay the balance off when the bill arrives. When you establish and maintain a solid track record of paying off credit card debt on time every month, your credit score improves.
They’re a good way to track your spending.Log into your online credit card account each week and track where you’ve been spending. If you see a purchase you didn’t make, call the credit card company immediately. Most card companies will simply remove any fraudulent charges and all will be back to normal.
Many credit cards offer some type of rewards program.Whether it’s cash-back or points that can be used towards airline tickets, hotel stays, gift cards, etc., always use a card that gives you something for using it. One card worth considering is a TD Rewards Visa. This card gives a cash back reward every year.
There are many other benefits of using credit cards.Most companies offer:
- Delayed & lost baggage assistance
- Emergency travel assistance
- Guaranteed hotel reservations
- No-fee travelers cheques
- Purchase security and extended warranty protection
- Rental auto collision insurance
- Travel medical insurance
and so much more!

Credit cards aren’t bad if you use them wisely. The main thing you must do ispay the full balance each month. If you can handle that, a credit card or two can be good for you.