Comment by ianburrell

One big reason to use credit card is that it gives window to settle problems. You have month to charge back before have to pay bank. If hotel places hold, it comes out of the credit limit not your bank balance. If someone makes fraudulent transactions, it isn’t your money and you can still pay rent.

If you pay the balance on time, you are getting free liquidity from the bank. But they get if you don’t pay off the balance.