5 Smart Strategies for Everyday Credit Card Use
Credit cards aren’t just for borrowing money. They can help you save—and earn—money if you use them strategically.
Whenever you find yourself in a financial bind or need an infusion of cash to finance a goal, a credit card can give you quick access to funds. But a credit card can be just as valuable if you already have the cash you need. In fact, if you strategically use a credit card for your day-to-day spending, you may be able to save money—or even earn a little.
Proper credit card management offers a wide range of benefits. They can help you manage your spending and give you access to rewards. To cash in on those benefits, shift your mindset from thinking of credit cards as a borrowing tool to thinking of them as a spending tool. That means committing to using the card to spend only what you can afford to pay in full each month—and then paying the bill on time. If you do carry a balance, any benefits you gain may be offset by interest.
Once you have a card with no balance, you’re ready to open the door to a rich set of perks. Here are some smart credit card strategies for improving your finances simply by using a credit card for everyday spending.
Track and Limit Your Spending
Would you say that you overspend? In the age of digital billing and subscriptions for everything, it can be easy to spend without even realizing the money is coming out of your account. The first step to gaining control of your money is knowing how much you’re spending each month and what you’re spending your money on.
Responsible credit card use is crucial, and in fact, credit cards can help with budgeting. When you make all your monthly purchases on a credit card, you can look at your statement to see where your money goes and the categories you spend the most on. That will help you to understand your spending habits so you can become more intentional about how much you spend.
Set Your Bill Payments and Avoid Late Fees
In a 2024 NerdWallet survey conducted by The Harris Poll, more than one-third of Americans were charged a late fee on bills in the past 12 months. Using a credit card to pay bills automatically—and then paying the credit card off each month—ensures your bills are always paid on time without having to think about it. That can save you from aggravation and the cost of late fees.
Protect Yourself from Fraud
62 million Americans experienced fraudulent charges on a debit or credit card in 2024, according to data from Security.org. While neither option is desirable, fraudulent credit card charges won’t drain your bank account, but debit card fraud might.
Credit cards also have better protection than debit cards. The Fair Credit Billing Act limits losses for unauthorized credit card charges to $50 as long as the charges are reported within 60 days. Some card providers have zero liability policies, meaning you won’t owe anything.
Simplify Your Finances
The time you spend managing your finances and credit card can keep you from doing other things that matter in your life. When you use your credit card to make all of your monthly purchases—and pay the card off each month—your finances become easier to manage, and you’ll likely spend less time working on them. Whether you’re spending time with family or putting in extra hours on a project for work, the extra time can be priceless.
Earn Rewards
According to the Consumer Financial Protection Bureau, consumers earn billions in credit card rewards each year. With a rewards card, the more you spend, the more rewards you get. When you use the card for your daily spending and pay your balance off in full each month, your regular monthly purchases pay off whether it’s through travel points or discounts on gas. Find a daily credit card that offers a perk that you will use regularly or find one that offers cash, such as the Fifth Third 1.67% Cash/Back Card, which gives cardholders 1.67% cash back on every purchase.
The right credit card can give you the best of both worlds. If you need cash, the card can be a trusted source. If you don’t need cash, it can be a trusted spending tool.
What to Do Next
- Review the different credit cards that Fifth Third offers.
- Learn more about taking control of your finances.