Credit cards are convenient. You don’t have to worry about carrying cash when you’re shopping. They offer protection that cash doesn’t if they’re stolen. They can be used to make online purchases. You can even use your credit cards to pay many of your bills, from your mobile phone bill to your home utilities. But should you? Is it a good idea to use credit cards for those routine expenses?

Benefits to Using Credit Cards for Everyday Expenses

For some people, the convenience is enough of a reason to use credit cards for everyday purchases and bill payments. Those with rewards cards, like the Woolworths Everyday Money credit card, may have an even better reason: they can earn cash back, frequent flyer points, or other rewards just for making the payments they would have to make each month anyway.

Rewards cards may allow you to earn points or cash back on anything from food and petrol purchases to rent payments. Some cards are even specifically designed to be used for routine purchases. The Citibank BP credit card, for example, offers extra rewards points on all petrol and other items purchased from BP.

Risks of Using Credit Cards for Routine Expenses

While it may be tempting to use credit cards for all of your basic purchases, there’s a danger in doing so–the ease of using credit cards may cause you to spend more than you can really afford. Because credit cards are technically lines of credit that don’t have to be repaid in full immediately, you can quickly run up debt, sometimes at high interest rates. For example, rather than doing food shopping with a list and a set amount of cash in-hand, you may find yourself with a larger bill as you make impulse buying decisions because your credit card balance allows you to spend more than planned.

The key to using credit cards for everyday expenses effectively is to pay off those credit card bills in full each month. Use your credit cards as a convenient form of payment and to accrue rewards points, but don’t actually use them as a line of credit to pay back over time–not for everyday expenses at least. Stick to spending no more than you earn, and you can use credit cards for any expense without actually putting yourself in debt.