Some people associate credit cards with evil. They believe that these plastic little devils can sway you to buy things beyond your means, and that over time, you forget the worth of hard-earned cash. Perhaps these lines of thinking do hold some grains of truth, but if you’re informed and clever about using credit cards properly, it’s you who can be cashing in on all the benefits they afford.

Indeed, credit cards hold so much more appeal than merely being cash alternatives or tools of convenience. Let’s explore their advantages in full.

1. Stay on top of your everyday spending. Use your credit card monthly statements to monitor your expenses, and check them against your saved receipts. Tap into online banking to examine your financial records daily. You can even subscribe to SMS notifications, where you’ll automatically get a message every time your credit card is swiped. Any unusual activity, and you’ll get wind of it immediately. You might even be able to set up due date reminders in order to avoid late payments and incurring those heinous fees.
2. Build your credit history and save money. If you use your credit card wisely, consistently paying it off on time and regularly utilizing it, you can establish a solid credit history that speaks volumes about your trustworthiness to potential lenders. That’s right. Looking to buy a home or car, and need a loan? With a higher credit score, you can qualify for low-interest rates on mortgages, automobiles and other costly items in your future, and that will save you money big time.
3. Travel with peace of mind. No one wants to be weighed down with thick wads of cash when traveling, especially to touristic destinations where pickpockets are ubiquitous. Leave the money at home, and travel with only what you’ll need for petty transactions. Thanks to the overwhelming presence of ATMs and their competitive foreign exchange rates, you can have money at your fingerprints anytime, anywhere. Beyond being a money medium, credit cards offer benefits like travel and emergency assistance, and other travel-related features in case of baggage delays or flight cancellations.
4. Earn rewards with every dollar you spend. Some cards offer incentives to spend, such as cashback, loyalty points, air miles, and more. So effectively, you could make money from your credit card, redeeming points for flight tickets, hotel stays, car rentals and gifts. These are only worthwhile if you pay your bill in full, though. Otherwise the interest you’ll be charged for an insufficient payment will easily outweigh the value of the rewards.

Ultimately, credit cards are a wonderful lesson in discipline and financial accountability. Just because you have the power (and credit limit) doesn’t mean you should use it—and that’s exactly what they’re about.