The average person has about three credit cards. Using a credit card has many advantages. Your purchases are secure, you can improve your credit score, and you can gain some seriously good rewards.
But do you keep your credit card receipts? Many people don’t. In our digital age, we can track our purchases online.
Is there still a reason to opt for and save receipts? Yes! Here are 10 reasons why.
1. In Case You Have to Return an Item
We’ve all been there: we purchase an item, we don’t like it, and we decide to get our money back. While many stores may not require a receipt for a return, it’s still safest to return the item with a receipt.
What does this have to do with credit card purchases?
Your saved receipt can also keep tabs of the credit that goes back on your account. If you can’t credit back your account, you can use the cash to pay off that credit card purchase and ensure you’re receiving the correct amount back.
2. Disputing a Purchase
As well as returning an item, your receipt can help if you’re disputing a purchase.
Let’s say the business refuses your dispute and states you’re wrong.
You can use your receipt to prove the amount you paid. The receipt can also prove you were a paying customer and you made your purchase on a specific day and time.
This is especially helpful if the business claims you paid a different amount than what you paid (for example, if the business overcharged you and stated you paid the higher amount).
3. Check Your Purchases Against Your Credit Card
In our digital age, you can access your credit card statement and purchase history online. But should you fully trust this?
While online billing is accurate, it’s not perfect. Keeping your receipts is extra financial protection.
You can also prove any faulty purchases, overcharged tips, and other fraud examples.
4. Helps You Budget
Are you the type of person who has difficulty budgeting with a credit card? It’s easy to rack up your credit card limit and not realize it.
Does that mean you need to stop using your credit card? Not at all! Just start saving your credit card receipts.
Keeping your credit card receipts can also help you budget and ensure you don’t reach your credit limit. You have physical proof of your credit card spending, ensuring you won’t be surprised when you look at your credit card statement.
Take time every night or even once a week to add up your purchases and add them to your credit card budget.
5. Keep Up with Credit Card Rewards
Let’s say you love using your credit card for the rewards but you’re not sure how many reward points you earned until the end of the month. You can save your credit card receipts and calculate your points throughout the month.
This is also helpful if you earn more points for specific purchases. For example, many cash rewards credit cards offer as much as 3% purchase points for gas and grocery purchases.
Save your gas and grocery receipts and you’ll always know how many points you earned.
6. Tax Deductions
Are you a freelancer or a business owner? If you get tax benefits with certain purchases, make it a point to save those receipts.
This is especially true if you’re putting these purchases on your business credit card. You can save your receipts and your credit card statements in case the IRS wants to audit you.
You can also give your credit card receipts to your accountant who can easily write off the taxes you spent.
7. Major Expense Purchases
If you need a major item, such as a computer or a new engine for your car, buying the product on your credit card ensures you can get the item immediately and you can pay it off later.
But what if something goes wrong with the product? What if you just can’t afford it and want to return it? You will probably not be able to return a computer without a receipt.
What if you purchased this item for your business? A receipt will come in handy when you’re filling out your P&L statements and other necessary accounting duties.
8. In Case You Have a Warranty
If you purchased a major product, the item will more than likely come with a warranty. Many warranties have fine print, such as active for a certain time frame and for certain products.
Keep your receipt in case your item needs repairs or a replacement. You can submit the receipt to ensure your item falls within the warranty terms.
9. Company Credit Card Purchases
Does your job let you use the company credit card? Most businesses have limitations when using their card. Always save your receipts to prove you’re using the card responsibly.
For example, let’s say you’re meeting up with a client and your job states you can only use their card for dinner and even gas.
Save those receipts. In case there’s a fraudulent transaction on that card, your receipts can prove you only used the car for the allowed purchases.
10. Monitor Your Subscriptions
Receipts aren’t limited to physical or paper receipts. If you have subscriptions, such as for entertainment and grocery programs, opt to receive email or text message receipts.
Many people opt for these services and forget they put them on their credit card. When your purchase is made for a month, you’ll receive a receipt and can better keep up with your finances.
This will also help you decide if these subscriptions are worth your investment. Let’s say you subscribe to a movie service but never have time to watch movies. Your receipt will remind you of your subscription and you can cancel it.
Start Saving Your Credit Card Receipts
From tax benefits to budgeting, there are many reasons to save your credit card receipts. If you don’t have this habit, it’s never too late to file your receipts!
Need more credit card advice? Looking for the latest news and advice on bad credit loans, payday loans, or quick loans? Then be sure to look through our blog to learn more. Here are the best credit cards for bad credit!
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