I know what you’re thinking. Credit cards are those evil things that put us on debt and enslave us, but they actually have their uses and there’s a way that you can “hack” credit cards. What most people overlook are credit cards have reward systems. They want you to put money on credit cards. Obviously they’re incentivizing you to spend and they’re hoping that you’re not going to pay them off. But if you have discipline, it actually makes sense to put everything on a credit card, and here’s why:

You can use those points towards things that you like. A lot of credit cards will have a point system, either for airline miles if you like to travel, some can be used on Amazon pretty easily, and there’s different points systems based on the credit card. What you want to look at is which credit card is best for you based on your spending habits and your credit score. There are also websites like NerdWallet that will help you figure out which one is best for your situation.

Now, what you don’t want are credit cards that might have a convenience fee. So, you might see your electric bill or your water maintenance bill that might have a convenience fee of 2% or 3%. That negates the benefits of putting it on a credit card. If it doesn’t, then it makes sense to use the card as long as you pay it off before the end of the month. Otherwise you are going to start getting those interest rate fees and charges, which will negate you putting it on the card.

I know where you’re saying, “Okay, well doesn’t credit card usage hurt my credit?” Not necessarily, because as long as you’re paying it off in time, it’s not going to actually register as usage. You just want to make sure you’re paying them off soon enough that it doesn’t register as usage. So should you put everything on a credit card? Probably, yes, as long as: A, you have the discipline to pay it off, and B, you’re not getting any of those “convenience” fees from whoever you’re paying the bills to.

Securities and advisory services offered through Madison Avenue Securities, LLC, member FINRA SIPC, and a registered investment advisor. Madison Avenue Securities, and Don Anders are not affiliated companies.