Dave Ramsey has a lot of good general ideas about financial planning that apply to most people most of the time. When it comes to saving money, paying off bad debts, and investing in low-cost index funds, I believe his advice is generally on point. However, the notion that credit cards are somehow bad is complete nonsense. In fact, there are many reasons why credit cards are great to have:

1. Access to rewards points/programs - If you use credit cards in the same way you would use cash or a debit card, you will earn anywhere from a few hundred to several thousand dollars per year, depending on how much money you spend. For instance, with a standard 2% cashback card, spending $50,000 on your credit card in a year would net you $1,000 cash back. Even better, many cards offer an introductory cash-back bonus ranging from $100 to $1,000 for spending a certain amount of money within the initial three months. Many cards also offer 5% cash back for certain purchases such as Amazon.com, restaurants, and gasoline. Getting 5% back on the gas you would have bought anyway is pretty nice. For every thousand dollars you spend on gas, you would get $50 back. Assuming you use your credit card for things you would have paid cash for anyway, it’s free money back in your pocket. Why do credit card companies offer cashback? Because every swipe of your card is a transaction fee that is typically charged to the merchant. Pitfalls to avoid: Watch out for merchants that charge a credit card fee and don’t buy things with a credit card just to buy them or because you get a higher cashback bonus. Additionally, you might try to help out your favorite mom-and-pop store by paying in cash so they aren’t charged these credit card fees.

2. Your money is safer - My credit cards get hacked about once every two to three years. I know some people who have their cards hacked much more frequently. It’s so easy for someone to sell your information on the dark web these days. If you have a debit card and don’t notice for several days or weeks, you have to physically get the money back from your financial institution. That can be painful for an especially large purchase. With a credit card, I can literally report the charge as unauthorized and be off the hook immediately. Most credit cards will not make you pay for the charge while they investigate the manner. You will get an instant credit back on your statement.

3. You can dispute and win transactions much easier - Have you ever bought something or paid for a service that was nothing like it was advertised? You may be hesitant to try something when unimaginable sales claims are made, but how would feel if you knew your credit card company would refund you if the service you bought wasn’t as advertised? Much like an unauthorized charge in #2, if you find that the charge on your card was unreasonable or not up to par, it is much easier to dispute the charge with your credit card because your money never actually left your account. A credit card works like an IOU, and a bad IOU (credit card charge) can be stricken from the record if it is falsely advertised or not up to the standard you were promised.

4. It builds your credit - Having a credit card and constantly paying it off will help your credit grow. If you ever apply for utilities, it might mean not having to pay a larger deposit. If you apply for an apartment, it may mean the difference between getting approved or declined. Or, you could be charged a smaller deposit with better credit than the next person. Sometimes, certain jobs (depending on the industry) will run a credit check before making a hiring decision. If you were hiring someone in a position that involved money would you want someone with good or bad credit? If you purchase a home or a vehicle, your credit score will be one of the biggest factors in determining your interest rate. On a $300,000 home, each 1% interest rate increase equates to roughly $200 per month more on a mortgage.

One final thought: Credit card companies make money mostly in two ways: 1. Making merchants pay for each and every swipe (typically not your problem), and 2. Getting people sucked into long-term credit card debt. There is nothing about this blog post that should make you think I advocate running up your credit card bill. First and foremost, you need to know your own psychology. If you simply cannot control yourself and your spending, maybe you don’t need a credit card. Some people will spend physical cash more easily than running a card, and others will swipe a card all day long before using their cash. Know yourself and how you’re wired.

Also, always make the full payment each month and never spend money you don’t have. If there is any question about this in your mind, then you probably do not need a credit card. With interest rates on the rise, most credit cards are charging more than 20% on carried balances each month. If you do not have the money to pay for it, don’t buy it. However, if you have the psychology and finances to use a credit card, you really should consider checking out some of the best credit card offers. If you understand the pros and cons of using a credit card, the decision of whether or not to own one should be pretty obvious by now for your particular situation.