Why nearly every purchase should be on a credit card
Editor's Note
Credit cards add a lot of convenience to our lives, and when used responsibly, they can be a very powerful financial tool. In fact, we would argue that most, if not all, purchases should be made with a credit card. Here are some reasons why.
Building credit
A strong credit score is one of the keys to a secure financial future, and using a credit card can help you build credit. The key is to make regular purchases with your card before paying off your balance in full each month. With your monthly payments reported to the credit bureau, potential lenders will see that you're a responsible borrower.
Making all of your purchases on a single credit card can also help you monitor your spending, as you can view all of your transactions in one place.
Related: The best first credit cards
Earning rewards
A credit card can be a great way to earn rewards through cash back or travel points and miles. Some cards, such as the Citi Double Cash® Card (see rates and fees), earn a flat percentage of cash back. Other cards, like the Chase Freedom Flex® (see rates and fees), offer rotating bonus cash-back categories.
There are also cards, like the American Express® Gold Card, with consistent bonus-earning rates in select categories, such as dining, airfare and groceries.
Ideally, many purchases you make will qualify for bonus points. You can even earn bonus rewards when you pay your monthly rent with a Bilt Mastercard®, up to 100,000 points in a calendar year (cardmembers must use the card five times each statement period to earn points).
Just remember that most reward earning is limited to purchase transactions. Cash advances, gift cards and sending money from your credit card through apps like Venmo, Zelle and PayPal don't count.
The information for the Bilt Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: How many credit cards should I have?
Welcome offers
Many credit cards come with welcome offers for new cardholders. Offers include large amounts of bonus cash back, points or miles after you spend a certain amount on the card within a specific period. To qualify for a welcome offer, use your card exclusively until you meet the spending requirement.
Related: Here are the best credit card welcome offers
Security
Credit cards offer more security than a debit card or cash can provide. For starters, every credit card offers zero-fraud-liability protection. With a debit card, if your card is used fraudulently, the money comes out of your bank account, and the corresponding fraud investigation can take time to resolve. Plus, there is no guarantee that you will get your money back.
With a credit card, money does not leave your bank account, and you are not responsible for the charges.
I recently had to dispute a purchase that didn't arrive, which I inadvertently made on my debit card. This process took three weeks to resolve. In the past, when I have had to dispute a credit card purchase, it was usually resolved in a couple of days and always in my favor.
Related: How to identify and prevent credit card fraud
Protection and insurance
Many credit cards offer protection and insurance when you make purchases or pay bills with your card. Some popular ones include:
- Purchase protection
- Extended warranty protection
- Baggage delay and lost baggage insurance
- Primary and secondary rental car insurance
- Trip delay and cancellation insurance
- Cellphone protection and insurance
If something goes awry, these protections can give you added peace of mind. Also, they are complimentary, so you receive coverage without paying additional fees (beyond the card's annual fee.)
Related: Best credit cards with travel insurance
Buy now, pay later vs. credit cards
Buy now, pay later plans can seem similar to a credit card at face value. You don't need to have the money available at that moment to cover your entire charge, and if you fail to make on-time, adequate payments, your credit score can suffer and you may be charged late fees.
Unlike credit cards, though, a buy now, pay later plan typically doesn't charge interest unless it's a longer-term plan. That can make it seem appealing for a large purchase. However, I still recommend using a credit card over a buy now, pay later plan.
As I discussed above, making a purchase on a credit card offers added protection and the ability to earn rewards. You won't get that with a buy now, pay later plan.
If you need to make payments over time on a purchase but don't want to rack up hefty interest charges, consider a card with a 0% introductory APR offer instead.
Bottom line
Using a credit card for the majority of your purchases carries several benefits. In addition to helping you build and maintain a good credit score, credit cards offer valuable rewards and purchase security. Some even include generous welcome offers.
Used responsibly, credit cards deliver peace of mind and more money in your pocket.
Related: The best credit cards
For rates and fees of the Amex Gold, click here.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
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- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees