Many people have different philosophies on using credit cards. Some think they are a bad financial choice and others feel they are great. According to the Dave Ramsey Budgeting Style you should never use credit cards, only debit.
I am kind of in the middle- I feel that depending on your spending habits they could be either. Credit cards must be used wisely and not in a way that makes you feel like you have an endless bank account.
Although it is not always possible, the best way to use credit cards (much to the chagrin of credit card companies) is to pay off your balance every month.
So, if you are able to be the type of person that can pay off your monthly balance I like cash back and reward cards. We have a couple that we use(d) and I have been very pleased with the “little extras” they have given us over the years.
I use a cash back card for my family business and it has provided me with enough money over the years to go on 2 cruises, give my mom a really fun beauty makeover, and do a minor kitchen remodel.
My husband has had a Sony card that we used for our house addition (paying it off monthly with the money we had in the bank for our addition). At one time he had a job with Sony and was able to take part in a a special employee discount and we basically got a really nice TV for free (only paying the tax).
We also have had our Discover Card since we first got married and use it occasionally as well. This card is nice because not only does it give you 1% cash back it sometimes also offers special gift card discounts. Say we have $40 in our rewards account- we might be able to buy s $50 value gift card to a nice restaurant with that.
We have enjoyed those gift cards- especially since the eating out budget has been slashed in our household.
Like I said before- credit cards (esp. with cash back or rewards) can be a good thing if you use them properly but only you know your spend habits.
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