Financial guruDave Ramsey says, Responsible use of a credit card does not exist.
He advises using cash instead.
While he may have good advice to offer in other areas, hereRamsey is just plain wrong.
Protection on No-Return Items
A few months ago I was overbilled for a computer repair.
I like having a credit card company to help me out at times like this.
Some stores dont allow returns, or specify that clearance items are non-refundable.
If you pay cash for these items and have a problem, youre usually out of luck.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
But if you pay with a credit card, you canfile a dispute.
Its important to note, asBankRate.com points out, that there are a few catches.
Did you know?
Cash-Back Rewards
I just received a $25 check for points I redeemed on one of my cards.
When its that easy, why would I want to pay cash and give up the extra money?
it’s possible for you to alsoget creative with rewards cardsto boost the balance and earn more.
Signup Bonuses
My wife and I made $800 fromcredit card signup bonusesthis year.
If youdochase after bonuses, you might be tempted to cancel your cards after getting your cash.
Butclosing accounts can hurt your credit score.
Extended Warranties
Some cards offer extended warranties on the items you buy.
For example, myAmerican Expresscard offers up to an additional year on many items.
AMEXs extended warranty saved us several hundred dollars, she wrote onWiseBread.
Keep the original receipts in case you’re gonna wanna file a claim.
Cash makes you a target for criminals, and if its lost or stolen youll never see it again.
Some cards offerzero liability.
Credit cards are safer and more convenient in many places.
Better Exchange Rates
When my wife recently visited Spain, she exchanged some dollars for euros at the airport.
Airport kiosks often offer poor exchange ratesandcharge high fees.
Credit cards offer better rates of exchange,according to a recent study.
To avoid extra costs, choose a card with no foreign transaction fees.
Heres a list of some of thebest travel cards.
Rental Car Insurance
When I traveled to Colorado last month, I rented a car for a week.
The rental companys collision damage waiver would have cost me $140 for the week, but I declined.
it’s possible for you to even use credit cards toget free access to airport lounges.
Check out the benefit guides that came with your cards to see whats available.
Expense Tracking
Credit cards give you a way to track expenses.
Receipts can easily get lost, so its nice to have online statements as a backup.
Some card issuers keep those records around for a long time.Discover Card statementsstay online for seven years.
Youll also need to document expenses for arental property, if you have one.
Convenience
If you pay cash for everything, you have to double-check you always have enough currency on you.
That means repeatedly stopping at the bank to replenish your funds when they get low.
Plus, you have to ensure you get the correct change mistakes can happen.
Its simply easier to whip out a credit card and swipe it.
The verdict is in on credit cards:Not guilty.
Steve Gillman is the author of 101 Weird Ways to Make Money and creator of EveryWayToMakeMoney.com.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
