Why are credit cards important?

We went to the grocery store today and we used a credit card as usual. Here are some pictures, my husband did not want to take pictures inside the grocery so it's mostly RC.

I agree that we have to live within our means but here are some reasons why we use credit cards, all opinions are 100% mine.  Most people would say that they need a credit card for emergency purposes, which is a valid reason.  If there is an unforeseen emergency that required us to pay out a significant amount of money for a home repair, car repair, etc., then a credit card can come to our rescue. 

At the end of the month we pay off the balance on the card.  That’s an ideal situation for the use of credit cards so you don't have to pay interest.  Another reason people use credit cards is to maintain or improve their credit score.  There are three reporting agencies, and each rate our score a little differently, but they all factor in the use of credit cards.   If you use the cards responsibly, it will help increase your credit score.  If you don’t use them responsibly, your credit score will suffer.  Credit scores are being used to qualify for a loan like a loan for a car.

Another use for credit cards is for rewards which increase as the amount you charge on the card increases.  One problem with rewards cards is that some of them charge annual fees.  The best rewards cards don’t charge an annual fee, so do some research before you get one.  You can look for credit card reviews or read financial forum to become more educated.  I have also found credit card calculator to be helpful when making comparisons.  For me, the best credit cards give the user cash back on some or all of their transactions.  I prefer the rewards card I have with our credit union.  It gives us one percent cash back on anything we use the card for, and there’s no annual fee.  We also have an airlines rewards card, but it has an annual fee.  The rewards for it are airline miles.

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