Oftentimes, people’s first reflex when making purchases are simply to use our debit cards and pay directly through our bank accounts. While this is usually a good thing, as this is a surefire way to avoid debt, there are opportunities where your credit card actually may be the better way to make purchases. A good example of this is when you are shopping online. Here are some reasons you should use a credit card while shopping online.
Alleviates the Risks of Fraud
Many people do not realize this, but most credit card companies will cover your cards with a zero fraud liability that was a part of the Fair Credit Billing Act. These coverages are not afforded to your debit card. In addition, if there is fraudulent activity that happens with your debit card, you are putting your entire bank account at risk. The same cannot be said regarding credit card transactions.
You Can Win Rewards and Cash-Back
Many credit cards will offer you exclusive rewards and cash-back offers when you shop with specific online stores. Sometimes, these deals may not be available in-store, making credit cards ideal to use in these situations. Many credit cards may offer you 1 or 2 percent cash-back on all purchases, but this can be much more when redeeming certain rewards associated with your cards.
Missing Easy Opportunities to Build Your Credit History
In 2023, online purchases are more common than ever, with some people making several per week. The sheer volume in which these transactions are made makes for a great opportunity for people to build a strong credit history. Remember, you can always pay off your credit transactions immediately with the credit card anyway, so you may as well earn rewards and build your credit while you’re at it.