This afternoon when I was talking to my friend Scott, he asked:”Why do you have so many credit cards? Do you love them? Why do you love credit cards?”. I told him that I love my credit cards very much and the reason why I have so many different credit cards is to maximum the rewards I can get from credit cards. However, I didn’t say much about the reason why I love credit cards. Because I realized then that there are many reasons why you’d love credit cards.

I have generated more than $1,000 revenue from my 12 credit cards in the past two years. I use my Chase Freedom Card to pay my wireless service bill every month automatically. It’s so convenient! I also use Starwood Preferred Guest Card from American Express which will double the manufacture’s warranty to purchase some large electronics. I also replaced my Discover Open Road Card immediately my authorized user lost that card on the bus. All my Visa, MasterCard and American Express cards can cover the collision and theft damage waiver for my rental cars. Yes, I’m benefiting from my credit cards all the time. I have many reasons to love them!

Rewards/Bonus: I believe this is the most important factor when you choose a credit card in the market. If you are not carrying balances, then APR is not a big concern for you. Choose a good rewards card and you can easily earn cash back or other kinds of rewards as a return. The credit card market is extremely competitive these days,. In order to attract more customers to use their credit cards. Some cedit cards offer as high as $250 sign-up bonus to their customers. $100 sign-up bonus is relatively normal nowadays. For more information about sign-up bonus opportunity, please check my latest Credit Card Sign-Up Offers.

Extended Warranty/Purchase Protection: This is why I like to use credit card to purchase large electronic products like: laptops, LCD TVs, Monitors, Digital Cameras and other stuffs. Of many credit card networks, American Express is my favorite. American Express Cards can double your manufacture’s warranty which will cost you about several hundreds dollars if you want to buy from your manufacturer. Visa Signature and MasterCard also offer similar benefit to their cardholders. Purchase protection is another benefit you might use. American Express, Visa, and MasterCard all offer certain types of insurance. If the item you purchased is broken, damaged or stolen within a certain period of time, they will repair, reimburse or even replace the item. Credit card is always a top choice when you want to purchase a large electronic product.

Build Your Credit Rating: Your credit score is very important nowadays. Your employer, your bank, your insurance company and your landlord will check your credit whenever you request credit from them. If you don’t maintain a good credit rating, your life will be getting tougher. Use your credit cards smartly is a quick and easy method to build your credit rating as well as credit score. Remember to pay your bills on time and maintain your balance to credit limit in a relatively low level (<30%) .

Emergency Fund: Most credit cards offer balance transfer and cash advance services. If you are short of money, you can use your credit cards to get some cash. But please read carefully about your current APR on balance transfer and cash advance. Make sure you can pay the money back in a short time, otherwise credit cards are the gateway to the hell of debit.

Free Rental Car Insurance: You may not know this, but your credit card provides a lot of free services in addition to letting you postpone payment on purchases and earn cash back or frequent flyer miles. One of these services is rental car collision insurance. By using a credit card to rent a car from rental companies, you can always refuse to buy expensive insurance provided from rental companies. Visa, Mastercard, Discover and American Express all offer free of charge auto insurance (collision damage waiver, car stolen waiver) when you use their credit cards to rent a car. Some of the even offer premium insurance service. When you use your credit cards to rent a car, you’d better call above mentioned companies to make sure that your rental car is covered by them. Car accidents are really expensive now.

Bill Payment: This is a very useful feature of today’s credit cards. In our daily life, we have to pay all kinds of bills. The more you have to pay, the easier you can forget them. The automatic payment can save your time and memory. You can sign up online and allow your service providers to charge your credit cards regularly. I currently use my Chase Freedom Card to pay my cable and wireless services. After I set up recurring payment online, the company will charge my Chase Freedom Card once every month. I can save several checks every month.

0% APR Loans: This is quite easy to understand. If you pay your credit card bill in full every month, you’re actually getting a 0% APR loan on every purchase you charge. If your credit card offers 0% APR on purchases or balance transfer, you can even enjoy 0% APR up to 15 months based on your credit card terms.

I love my credit cards, and if you’re a wise credit card user, there are a couple of reasons why you should love credit cards.