You probably hear often that credit cards aren’t good. The truth is, though, they can be when you use them right. While they can be a great temptation to overspend and go over budget, credit cards are also a great way to do great things.

Check out the top 6 ways to use a credit card.

1. Help you build a credit history

Everyone needs a credit history to build a credit score. Without a credit score, you can’t get a mortgage, a car loan, or sometimes even get a job. Lenders, future employers, and sometimes even insurance companies want to see your credit history.

Using a credit card responsibly helps you build a good credit history and a strong financial foundation.

2. You can track your spending

When you use cash, it’s hard to track it. Suddenly you’re left wondering where that $100 went in the last two days.

With a credit card, you know exactly how much you spend and where. You can check your account in real-time, always knowing where you stand. It’s easier to stick to your budget when you see in black and white how much you’ve spent.

3. You may earn rewards

Many credit cards offer rewards when you use them. Airline miles, cashback, and e-gift cards are a few options. If you charge expenses you’d normally have anyway, such as utilities, groceries, and household goods, you may earn money back for buying what you would normally buy.

4. Credit cards protect you against fraud

If your credit card is stolen, you aren’t liable for the charges. If your cash or checkbook is stolen, you’re responsible for all the charges – there’s no one to bail you out. Credit cards provide the level of protection that you need.

5. Credit cards are great for emergencies

If you don’t have an emergency fund, or you use it up and still have more financial issues, a credit card can be a good back up. It’s not ideal to rack up credit card debt if you can’t pay it off, but it’s faster and easier than taking out a personal loan, which would rack up interest charges too.

6. You get a grace period

If you use your credit card, it should be for charges you can afford, but knowing you have a 30 day grace period may help, especially in emergencies. It gives you time to figure things out, get situated, and hopefully pay the debt off right away.

Using a credit card doesn’t have to be bad. When you use them responsibly, they can be rewarding, provide a sense of security, and even help boost your credit score. While we don’t recommend having a handful of credit cards and racking up debt often – we do think it’s a good idea to use your credit cards once in a while to boost your credit and definitely when you’re making large purchases. You won’t get the same level of protection with any other payment method.

Rahul Iyer