Whether you’re building credit or just ready for a financially rainy day, a credit card is a valuable piece of plastic to have in your wallet. Having the ability to spread out payments on large purchases or take care of unforeseen expenses can ease some of the stress that comes with adulting.

Cash Back Credit Card

But is it a good idea to use credit cards for everyday purchases? It can be if you have the income to support it. And it’s an even better idea when you have a cash back credit card. This means that you receive a percentage back on each purchase you make. The benefits don’t end with cash back though.

1. Use Your Cash Back However You Like

One of the things journeytobillions likes most about cash back credit cards is that you have the ability to use your cash back any way you see fit. If you want to put your cash back into your savings, you can. If you want to invest it, that’s okay too. You can even take your earnings and visit a casino if you are so inclined. The ability to do whatever you want with your cash back is a big bonus, whether you’re a private consumer or a business entity.

2. Shopping Perks

Most cash back credit cards reward you with 1 to 5% back on purchases. But some cards offer more back on certain purchases or when you shop with certain retailers. You may also be able to take advantage of price matching, extended warranties, refund and return guarantee and more. Their ability to safeguard purchases and save you even more money and hassle is a huge draw for many credit card users. Be sure to read the fine print to see what shopping perks the cash back credit card you are considering offers.

3. No Annual Fee

This is not true of all cash back credit cards, but many of these types of cards have no annual fee. No fee means that you actually get to keep all of the cash you earn by spending. Your rewards, stay your rewards. No annual fee also allows you to discontinue using the card without having to pay a fee. Remember, the longer you have a credit card, even if you rarely use it, the more likely you are to have a better credit rating. In addition to no annual fee, some of these cards also have 0% APR offers on balance transfers or for a limited time.

There are plenty of benefits that come with springing for a cash back credit card. Having a cash back credit card can allow you to carry less cash. This can mean a thinner wallet or a lighter purse and fewer trips to the ATM. These types of credit cards allow you to save money on multiple levels, while returning a portion of the purchase price to you. Adding a cash back credit card to your financial plan can truly be an advantage when you carefully plan your spending and where you allocate your rewards.