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There are some people who use credit cards to make a lot of savings. This is because they gain from lot of indirect benefits, which most other credit card customers fail to recognize.

Fear of high interest rates

Fear of high interest rates on credit cards stops many card holders from going overboard with their expenses and sticking to their budget. If you have an outstanding due, you could end up paying a large amount of interest which is what needs to be avoided. This consciousness about paying interests will deter many credit card customers.

Lower interests on loans and mortgages

A credit card doesn't directly get you loans with lower interests or mortgages with smaller payments per month. However, using a credit card properly for a couple of years will certainly improve your credit history to an extent that you will be benefited from lower interests on loans which you are likely to need in the future.

Miscellaneous benefits of credit history like insurance premiums

Similar to loans, a good credit history can earn you lower premiums on your insurance. There are various other miscellaneous benefits too. For example, some landlords in posh neighborhoods especially loop for the credit rating of the individual before renting the apartment. Some employers too are known to refer to the credit history of the candidate before making a job offer. Using a credit card properly is a reasonable way of improving your credit history and reaping the benefits all over.

Expenditure auditing

Credit card expenditure reports, if you have the time can help you keep track of where your money has gone. If you spend cash, you might find it hard to trace where you have spent the money over the entire month. But if you keep charging all your expenses to the credit card, then your expenditure will have a good audit trail, which you can use to filter bad expenses from good ones. Wastage can be reduced using this mechanism as well.

Emergency coverage

Having a credit card is always a good thing to cover for you during emergencies. There are many times when we fall short of cash but need to buy something. Credit card in a way offers you an interest free loan for more than a month depending on when you made your purchase. You can also reap the benefits of online deals and transactions with the help of a credit card.