10 Big Benefits of Using a Credit Card

Some say cash is king, but there are many cases when using a credit card to shop is a smart choice, too.

In fact, today's credit cards come with plenty of perks and advantages. The trick is to choose the card that's right for you, and do your best to pay off the full balance every month to avoid paying interest and keep your credit score in top form.

Below, we outline 10 key benefits of having a credit card if you're on the fence about opening an account.

1. Build Your Credit Score

Using a credit card means repeatedly borrowing money and paying it back. As this happens over time, you're building what's known as a credit history, or a record of how much money you've borrowed and how quickly (and well) you've paid it off.

Your credit history is what credit bureaus such as Equifax look at when they're calculating your credit score, which is kind of like a grade that judges how risky it is for a financial institution to lend money to you. The higher the score, the lower the risk—and the more likely you are to be able to borrow money when you need it, at a good rate.

When you have a credit card and use it regularly, that's an opportunity to build a good credit history. To improve your credit score and build your credit history, follow these guidelines:

• Pay your bills on time.
• Use only a small percentage of your available credit.
• Keep cards for a long time (older accounts are better for your credit score).
• Limit the number of new credit cards you apply for.

The idea is to demonstrate that you can use credit responsibly, and a credit card is a fantastic way to do that.¹

Read more: Ready for a Credit Card? First Learn These Basics

2. Track Your Purchases

When you have a credit card, you receive a billing statement each month outlining all of your purchases. Sometimes, the credit card company will even add up how much money you spent on items in different categories, such as gas or groceries.

If you have a hard time with budgeting, these statements can be a useful way to track your spending and understand where your money is going.

3. Share Joint Expenses

Married or cohabitating couples often share a joint bank account for household expenses. But sharing a credit card can be a useful way to divide up costs, too.

Usually this involves one person (the primary cardholder) requesting that a second cardholder be added to their account. Then, put all "family" purchases on this card and split the bill however you split your household expenses.

4. Earn Credit Card Rewards or Cash Back

Many credit cards offer customers rewards for using them. The most common rewards are either cash back or points.

Cash back rewards are pretty simple to understand: With every dollar you spend, based on the conditions in your credit card agreement, you accumulate cash that is either credited back on your statement or, in some cases, deposited in your bank account. The Synchrony Premier World Mastercard®, for example, offers 2% cash back on every purchase.

Credit cards with reward points are a little more complicated because how the points system works varies from card to card. You might earn "miles" that you can use for travel, or points that you can exchange for retail gift cards or merchandise. If you're considering this kind of rewards credit card, be sure to research how it works, how much your points will be worth and how to redeem them.

Read more: Do I Want Credit Card Points, Miles or Cash Back?

5. Have Money When You Need It

Sometimes, the timing just doesn't work out, and you need to purchase something before your paycheck comes in. A credit card can help you bridge the gap between when you buy and when you have money—without having to pay interest. This is all thanks to the grace period offered by credit cards.

What is a grace period? It's the period of time between when you make a purchase and when your bill is due. For example, you might receive a credit card statement on the 10th of the month with a payment due date of the 25th, 15 days later. As long as you pay your bill in full by the due date (and provided we're talking about purchases and not, say, cash advances), you shouldn't have to pay any interest on purchases made that month.

6. Book Ahead When Traveling

Heading on vacation and want to book a rental car, hotel room or even excursions ahead of time? A credit card will more than come in handy—it's often the only way to make these kinds of reservations. As a bonus, in some cases, you can book on your card without having to make a payment until you're actually using the service.

7. Protect Against Fraud and Theft

If someone steals your wallet full of cash, that money is probably gone forever (sorry!). But if a thief takes off with your credit card, all it takes is a call to the bank (or even a visit to their app or website) to shut down the account.

Similarly, if you find transactions you didn't make on your credit card statement, or you made a purchase and did not actually receive the item or service you paid for, you can often get those charges reversed by calling your bank and explaining the situation. (Tip: This is one reason it's a good idea to read through your statement thoroughly every month, if not more often.)

Synchrony Mastercards offer identity theft protection and zero liability protection, meaning you can feel safe carrying and using them and confident you won't be liable for transactions you're not responsible for.

8. Take Advantage of Convenience

A credit card is a convenient way to shop online, whether you're entering your information directly or using a service like Apple Pay for one-click shopping.

Credit cards can be convenient in person, too. For example, Synchrony Mastercards offer contactless payments, which means when you're shopping at a touchless terminal, you can just tap and go—no need to sign or enter a PIN.

9. Get Discounts and Credits

Choose the right credit card and you'll have access to discounts and credits that help you save money on everyday purchases. With the Synchrony Premier World Mastercard®, for instance, you can get $5 per month in Lyft credit² plus membership and discounts with DoorDash.³

10. Access Unique Perks and Experiences

Discounts are one thing, but premium experiences are next-level. One perk of the Synchrony Premier World Mastercard® is access to Mastercard Travel & Lifestyle Services as well as Priceless® Experiences, which may include everything from Rugby World Cup packages⁴ to opportunities to skip the line at destinations like Chapultepec Castle and the National Museum of History in Mexico City.⁵

Credit Cards Can Make Your Life Easier

With the right credit card in your wallet (or loaded on your smartphone), you'll open up a world of possibilities. Not only does responsible credit card use help you build credit and protect you from theft, but it also gives you the chance to access rewards, perks and discounts that could ultimately save you money. For more on how credit cards can help you, learn about the benefits that come with being a Synchrony Mastercard cardholder.

READ MORE: Are You Getting the Most Out of Your Credit Card?