Should I Only Use a Credit Card for Bills and Recurring Transactions?
The average American has three credit cards, and plastic is the payment method of choice for many consumers. Over a quarter (29%) of those surveyed by the Pew Research Center in 2018 said they make no cash purchases at all over the course of a typical week. Using credit cards for everyday spending is certainly convenient—and doing so could help you build your credit. But are there downsides?
You may worry using a credit card to make day-to-day purchases with a variety of merchants could leave you open to credit and identity theft. Instead, you might use your debit card for these transactions, reserving your credit cards for regular monthly bills and subscriptions with companies you trust. However, reaching for your debit card for day-to-day spending isn't necessarily safer. There are actually fewer safeguards in place when it comes to consumer protections. What's more, you could be missing out on lucrative rewards if you only use your credit card for a few transactions a month.
There are pros and cons to using credit to cover daily spending. Understanding them can help you determine which payment method is the best fit for you.
Benefits of Using Credit Cards for Recurring Transactions
There are many reasons why using credit cards for recurring monthly expenses can be a smart financial move—not the least of which is that handling payments for things like your cellphone and video streaming accounts with a credit card you have set to autopay helps make sure you never miss a payment. Here are some additional perks.
You're Keeping That Card Open and Active
When you stop using a credit card for an extended period, you run the risk of that card being canceled by the lender. This is because credit card issuers may close accounts that have been inactive for a long time. While most issuers do not disclose their exact policies, it stands to reason that there isn't much incentive for them to keep dormant fee-free accounts open for the long haul. (Be sure to check your cards' terms and conditions regarding their inactivity policies.)
Closing an inactive account might come as a benefit to a card issuer, but it has the potential to bring down your credit scores. For starters, your available credit will decrease. So if you're carrying balances on other accounts, your credit utilization rate will go up. This, in turn, can drag down your score. Closed accounts also decrease the average age of your credit history, which makes up 15% of your FICO® ScoreΘ. Accounts closed in good standing stay on your credit report for 10 years after they're closed, so this is a smaller worry, but it could eventually cause you some strife if it's an old account with a spotless payment history.
You're Staying Ahead of Scammers
Credit cards come with some degree of built-in fraud protection. Thanks to the Fair Credit Billing Act, cardholders can't be held liable for more than $50 of unauthorized charges. Most credit card issuers take this to the next level and waive cardholder liability altogether. This could be a huge relief if your account number is ever compromised. In this way, using credit cards can provide additional peace of mind.
Debit cards are a different story. If a fraudster racks up transactions with your card, that money will come directly out of your bank account—and you could end up waiting days for your bank to reimburse you. Moreover, you might ultimately be on the hook for more than $50 in charges.
The Perks of Using Credit Cards for Everyday Spending
Using credit cards for recurring transactions comes with quite a few perks. The same can also be said for using a credit card to cover everyday spending that goes beyond your monthly bills. Opting for a debit card or cash means missing out on potential points, rewards and other perks.
Whether you're spending on groceries, gas, eating out or staying at a hotel, there are plenty of rewards cards that let you earn while you do your regular shopping. On top of that, you could land a lucrative sign-up bonus in the process. Rewards cards are ideal for eligible consumers who don't carry a balance from month to month. If you do, high interest rates could negate the benefits. You'll also want to compare any annual fees to see if they're worth it.
Further, it's not uncommon for credit cards to offer additional consumer protections such as extended warranties on goods you buy, increased fraud protection (more on that later) and purchase protection.
Best credit cards of 2026
Compare cards from our partners with intro bonuses, cash back or points offers, and annual fees as low as $0.
Offers from our partners
Blue Cash Everyday® Card from American Express
Intro bonus:You may be eligible for as high as $200 cash back after spending $2,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.
Intro APR:0% on Purchases and Balance Transfers for 15 months
Ongoing APR:19.49%-28.49% Variable
Rewards:1% - 3% (cash back)
Annual Fee:$0
Wells Fargo Reflect® Card
Intro APR:0% intro APR for 21 months from account opening on purchases and qualifying balance transfers
Ongoing APR:17.49%, 23.99%, or 28.24% Variable APR
Rewards:N/A*
Annual Fee:$0
Discover it® Chrome
Intro bonus:INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards.
Intro APR:0% intro APR for 6 Months on Purchases and 0% intro APR for 18 Months on Balance Transfers
Ongoing APR:17.49% - 26.49% Variable APR
Rewards:1% - 2% (cash back)
Annual Fee:$0
Revel® Platinum Mastercard®
Ongoing APR:35.90% Fixed
Rewards:N/A*
Annual Fee:$75 - $125
Citi® Diamond Preferred® Card
Intro APR:0% for 21 months on Balance Transfers and 12 months on Purchases
Ongoing APR:16.49% - 27.24% (Variable)
Rewards:N/A*
Annual Fee:$0
FIT™ Platinum Mastercard® - $400 Credit Limit
Ongoing APR:35.90% Fixed
Rewards:N/A*
Annual Fee:$99 first year; $125 thereafter
The opensky® Secured Visa® Credit Card
Ongoing APR:23.89% Variable
Rewards:10% (cash back)
Annual Fee:$35
Credit One Bank American Express® Card for Rebuilding Credit
Ongoing APR:29.74% Variable
Rewards:1% (cash back)
Annual Fee:$75 First year. $99 thereafter, billed monthly at $8.25
Blue Cash Preferred® Card from American Express
Intro bonus:You may be eligible for as high as $300 cash back after spending $3,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.
Intro APR:0% on Purchases and Balance Transfers for 12 months
Ongoing APR:19.49%-28.49% Variable
Rewards:1% - 6% (cash back)
Annual Fee:$0 intro annual fee for the first year, then $95.
American Airlines AAdvantage® MileUp® Card
Intro APR:0% for 15 months on Balance Transfers
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:2x (Miles per dollar)
Annual Fee:$0
Costco Anywhere Visa® Card by Citi
Ongoing APR:18.74% - 26.74% (Variable)
Rewards:1% - 5% (cash back)
Annual Fee:$0
American Express® Gold Card
Intro bonus:You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.
Ongoing APR:See Pay Over Time APR
Rewards:1x - 4x (Points per dollar)
Annual Fee:$325
First Latitude Secured Mastercard® Cash Back Rewards
Ongoing APR:27.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$0
Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:2x (Miles per dollar)
Annual Fee:$99, waived for first 12 months
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$75*
Citi® / AAdvantage® Globe™ Mastercard®
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:1x - 6x (Miles per dollar)
Annual Fee:$350
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:Introductory fee of $75 for the first year. After that, $99 annually.*
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$39*
Credit One Bank® Platinum X5 Visa® Metal Card
Ongoing APR:29.74% Variable
Rewards:1% - 5% (cash back)
Annual Fee:$95
First Progress Prestige Secured Mastercard® Cash Back Rewards
Ongoing APR:13.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$49
First Progress Select Secured Mastercard® Cash Back Rewards
Ongoing APR:17.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$39
Credit One Bank® Premier American Express® Credit Card
Ongoing APR:29.74% Variable
Rewards:1% (cash back)
Annual Fee:$39
Marriott Bonvoy Brilliant® American Express® Card
Intro bonus:Earn 200,000 Marriott Bonvoy® bonus points after you use your new Card to make $6,000 in purchases within the first 6 months of Card Membership. Offer Ends 5/13/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:2x - 6x (Points per dollar)
Annual Fee:$650
Discover it® Miles
Intro bonus:UNLIMITED BONUS: Unlimited Mile-for-Mile match for all new cardmembers. Discover gives you an unlimited match of all the Miles you’ve earned at the end of your first year. There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match. You could turn 35,000 Miles into 70,000 Miles.
Intro APR:0% intro APR for 15 months on Purchases and Balance Transfers
Ongoing APR:17.49% - 26.49% Variable APR
Rewards:1.5x (Miles per dollar)
Annual Fee:$0
Delta SkyMiles® Gold American Express Card
Intro bonus:Earn 70,000 Bonus Miles after you spend $3,000 in purchases with your new Card, and an additional 20,000 bonus miles after you make an additional $2,000 in purchases on the Card, both within your first 6 months. Ends 04/01/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:1x - 2x (Miles per dollar)
Annual Fee:$0 introductory annual fee for the first year, then $150.
Hilton Honors American Express Surpass® Card
Intro bonus:Earn 130,000 Bonus Points plus a Free Night Reward after you spend $3,000 in purchases on the Card in the first 6 months of Card Membership. Offer Ends 4/15/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:3x - 12x (Points per dollar)
Annual Fee:$150
Delta SkyMiles® Blue American Express Card
Intro bonus:Earn 10,000 bonus miles after you spend $1,000 in purchases on your new Card in your first 6 months.
Ongoing APR:19.49%-28.49% Variable
Rewards:1x - 2x (Miles per dollar)
Annual Fee:$0
One Key+™ Card
Intro bonus:Earn $350 in OneKeyCash™ after you spend $3,000 on purchases in the first 3 months. OneKeyCash is not redeemable for cash and can only be used on Expedia®, Hotels.com® and Vrbo®. To learn more, please refer to the One Key Terms and Conditions at www.expedia.com/one-key-terms.
Ongoing APR:18.49%, 23.49%, or 28.49% Variable APR
Rewards:2x - 3x (Points per dollar)
Annual Fee:$99
Avant® Cashback Rewards Mastercard® - With A Higher Credit Limit
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$125*
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$0*
See all our best credit cards for 2026.
The Downside of Using Credit Cards for Daily Expenses
Swiping your credit card to cover daily expenses is only a good idea if you're properly budgeting to ensure your debt doesn't get out of hand. Things can get complicated if you're blindly using credit cards to cover transactions without keeping a close eye on your balances. Credit card spending comes with benefits, sure, but doing so irresponsibly could trap you in a cycle of debt that's hard to escape from. Instead, it's best to charge purchases you plan on paying off in full each month. If something comes up that throws off your budget, aim to keep your balance at or below 30% of your credit limit. Doing so can help protect your FICO® Score from taking a hit.
The Bottom Line
Whether you're using credit cards for recurring transactions, everyday spending or both, keeping your private information safe is always a top priority. An Experian Premium membership allows for comprehensive identity theft protection that includes dark web surveillance, fraud resolution and more. Free credit monitoring is another simple, hands-off way to detect potential fraud sooner and stop it in its tracks.
If you're looking for a credit card to use, Experian's card comparison tool can link you up with excellent credit cards matched to your profile.
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About the author
Marianne Hayes
Marianne Hayes is a longtime freelance writer who's been covering personal finance for nearly a decade. She specializes in everything from debt management and budgeting to investing and saving. Marianne has written for CNBC, Redbook, Cosmopolitan, Good Housekeeping and more.
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