4 Credit Card Perks I'd Never Want to Live Without

There are many different opinions in the personal finance world about credit cards. Some people, like Dave Ramsey, think there is no benefit to them -- but many other experts recommend using credit cards wisely.

I fall squarely into the latter camp. I love the benefits that credit cards offer and there are numerous advantages to being a cardholder. In fact, here are four credit card perks I'd never want to live without.

1. Credit building  

For me, the single biggest benefit of having credit cards is that my cards have helped me earn a great credit score. I have a credit score of 810 (although it fluctuates a little here and there), and that's largely thanks to my cards since I don't do much other borrowing.

My credit cards have helped me build credit because I pay my bills on time, so I've developed a positive payment history. I also keep my credit usage to well below 30% of my credit limit, which is another important factor in the credit scoring formula (using more than this amount of available credit is seen as a red flag that you may be getting out of control with debt). 

Thanks to my great credit score -- which is mostly great because of these borrowing behaviors -- I had my pick of mortgage lenders when I bought my home and I was able to get a loan at a very competitive interest rate. 

2. Credit card rewards 

Credit card rewards are another perk I absolutely would not be willing to live without. One of my favorite cards offers me 5% cash back on the purchases I make at my favorite places to shop. This means for every $100 I spend, I get $5 back to shop with. That's a huge savings and in many months, I'm able to entirely pay for some purchases with my rewards. 

I would be spending this money even if I didn't earn these credit card rewards, so the fact that I do is awesome because I'm literally getting free money back and saving on future purchases. 

3. Insurance coverage

Travel insurance is another benefit my credit cards offer that I wouldn't want to pass up. I travel often, and I like knowing that if my trip is interrupted or my luggage is lost, my credit card will cover the associated costs. 

Of course, I could buy standalone travel insurance, but this would get expensive. The average cost of travel insurance is usually around 4% to 12% of the total amount spent on the trip. Why not just rely on my credit cards? After all, they provide free protections for most of the common things that could go wrong, like being unable to go on a planned trip or medical evacuation in case an emergency happens while I'm away. 

4. Purchase protections

Finally, the last benefit I wouldn't be willing to live without is the purchase protections I get when I charge items on my card.

I've had all sorts of problems in my years of shopping online, including the time a cabinet I ordered arrived cracked. The merchant didn't respond, but my credit card company stepped in and I got my money back. Otherwise, I would have been out over $250.

These four cardholder benefits have been awesome for me, saving me money and making my life easier. I would never want to give them up so I intend to keep using cards that offer them forever.