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  1. @pfinMario: The first point you made about rewards is a big one. My wife and I use a credit card for everything and pay it off at the end of the month. It’s really easy for us to say we’re not spending more with a credit card than we would with a debit card or cash. But if we were being really honest, there were probably a handful of times in which that wasn’t true (particularly at the grocery store). That said, I believe it still makes financial sense for us, even if we do spend a bit more than planned every once in a while.

  2. If I can’t pay off the amount of the credit card purchase by the end of the month without dipping into my emergency funds, then I take it as a sign that I shouldn’t be buying it :)

    But I’m certainly in a different place with debt than other folks are (see my blog for details if you want). Some more points:

    “You want to take advantage of the rewards.” Not a bad idea if you don’t let the rewards trick you into spending more. Make sure you know the rewards percentage you get too; some cards have revolving categories.

    “Helps to build credit history.” It’s having the credit line open that builds history; not necessarily using it. If this is your goal, just use it once a year so it doesn’t get closed for inactivity.

    “Making a larger purchase?” These aren’t bad reasons, though see the first line of my response again :) I’ve also found that sellers who accept credit card for big purchases — esp. cars or furniture — are willing to negotiate with you if you offer to pay cash to avoid fees, so make sure you ask that question.

  3. We use a mix of paying by cash and using our credit card. We like to use credit cards for the larger purchases for the better protection as well as to earn the rewards. We pay off our two main cards each month so it works out well for us.

  4. I have started to use my credit card for almost every purchase. It gives me the rewards for stuff I was already going to purchase, plus I get the security of a credit card. I pay off the balance, so I get to reap the rewards. If you don’t, then the point is moot.

    • @Grayson – I’d be interested to hear how you pay everything w/ cc and how you navigate your bills/budgeting
      @John – I’m with you on the larger purchases too


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