7 Reasons You Should Be Using a Password Manager Right Now

Password managers are more than just a place to store your login information—they can help prevent identity theft, stop hackers from accessing your accounts, and more.


Amanda Stoneman
Updated 7 June 2021
7 Reasons You Should Be Using a Password Manager Right Now
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United States Scam & Fraud Statistics 2020


$3.3 billion total fraud losses
4.7 million fraud reports

1.4 million reports of identity theft

Source: 2019-20 Consumer Sentinel Report

Sections on this page
  1. 7 (Convincing) Reasons To Use a Password Manager
  2. What is a Password Manager?
  3. Extra Features of Password Managers
  4. Are Password Managers Safe?

Do you consistently reuse the same password when registering for different online accounts? Do you modify your passwords with slight variations but find yourself typing in various combinations until you hit the right one? If either of these applies to you, it may be time for a password manager. With a password manager, you can add an extra layer of security to your accounts and store all your complex passwords in one place. Here’s some helpful information about password managers and why you should use one.

7 (Convincing) Reasons To Use a Password Manager

In this day and age, where so much of your information is stored online and easily accessible by hackers and scammers, it’s essential to use security tools like password managers.

1. Browser Autofills Are Not Safe

According to research published in Princeton's Center for Information Technology Policy, many browser-based password storage tools are being exploited by online advertising and tracking firms to harvest autofill email addresses and passwords. That’s one reason why using a password manager is one of the top safety practices recommended by security experts to protect your privacy.

2. Remember One Password Only

Data breaches happen every year. Regardless of its size or security measures, no company is immune from hackers, who often go after your passwords. When your password leaks or you fall victim to a phishing scam, cybercriminals and scammers will use various combinations to access your accounts.

If you use the same password on every account, it’ll be easier for them to gain access. That’s why it’s more important than ever to use unique passwords on every website, and a password manager helps with this.

Imagine having to remember every single unique password on all your accounts—it’s almost impossible. With a password manager, all you need to do is remember a single password that will get you access to the rest.

3.  Create Stronger Passwords

Let’s face it, creating so many unique passwords can be tiring. And, as hard as we try, we’re probably using the name of our street or our pet’s name, which isn’t exactly very secure. Password managers help you create strong passwords that no one will be able to guess.

4.  Store Your Password Securely

Most password managers use 256-bit AES encryption to secure your passwords—a military-grade level encryption method to avoid unauthorized access. This means password managers are much more secure than storing your passwords on a file in your computer (even if it’s password protected) or on a piece of paper in your home office.

5. Password Manager Autofills Stop Prying Eyes

If you’re logging in to one of your online accounts in public, chances are there are people around you who could probably see what you’re typing. Password managers generally have an autofill feature that automatically inputs your username and password when you’re on each site’s login page.

Not only is this super convenient, but other people around you won’t be able to see what you’re typing and subsequently gain access to your accounts.

6. Securely Share Your Passwords with Others

You likely have some passwords that you share with your friends and family, whether it’s for your Amazon Prime account, your Netflix account, or even your cell phone account. It’s normal for people to simply text the account login to each other and then save it on their phones or fridge. With a password manager, you can share passwords securely.

7.  Access Your Passwords Anywhere

Most password managers are now compatible with any device and browser. So, it doesn’t matter what brand or product you prefer—Apple or Samsung, Mac, or PC—you’ll be able to access your passwords easily from any device.

Check out our favorite password managers for different needs. Whether you need a solution for your small business, your family, or need something for just yourself.

What is a Password Manager?

A password manager:

  • Helps you generate complex, strong passwords for each of your online accounts
  • Stores all your passwords and credit card information in a safe location

Once stored, you will be able to access your account (via password or fingerprint) online and won’t need to remember the countless number of logins you have.

There are two types of password managers you might consider with different methods to save your data: locally installed offline password managers and web-based or online password managers.

Locally Installed (Offline) Password Managers

 Locally-installed password managers store data on your devices, such as a computer or smartphone. This type of password manager secures passwords in an encrypted file that’s outside the password manager.

Pros:

  • Reduced risk of someone breaching your data
  • Free accounts, usually

Cons:

  • You can only access this information on one device
  • You can lose this data if your device is lost or stolen

Web-Based (Online) Password Managers

Web-based password managers store data on the cloud. This type of password manager enables you to access your passwords from any device without installing the software. Web-based password managers use zero-knowledge technology, meaning they encrypt data before putting it on the cloud. This is usually a paid service that requires internet connectivity.

Pros:

  • Allows you to access your passwords from any device connected to the internet
  • Autofill your passwords

Cons:

  • Many options are paid (although there are some good free options)
  • Requires an internet connection

Extra Features of Password Managers

In addition to storing passwords, some password managers will also let your store credit card information. While many password managers use a master password to access stored data, some support using biometric data such as a fingerprint or face ID in place of a master password for added security.

Furthermore, many family plans on password managers enable you to share information with your family and friends without putting that sensitive data in an email or text message.

Other helpful features of password managers include:

  • Autofill form profiles
  • Built-in secure web browser
  • Added storage for documents and images
  • Secure, full-fledged note-taking capabilities
  • Digital security audit
  • Dark web security monitoring

Are Password Managers Safe?

Many cybersecurity professionals agree that password managers are one of the most secure ways to protect your passwords.

  • Military-grade: Most use a military-grade robust security algorithm to encrypt and protect your passwords. This type of encryption, known as AES 256-bit, is a reliable and effective way to ward off hacking attempts and safeguard your sensitive data.
  • Information is safe even from the provider: Password managers also leverage zero-knowledge architecture to keep your data safe from individuals at the company, which means only you can see the information stored there. Your passwords are encrypted before they leave your device, and no one can access that data on the company’s server.
  • Extra security: Most password managers use two-factor and biometric authentication to add additional security measures for your data.

All these safety features work together to ensure your data remains safe.

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