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Credit Cards and Me

I like my credit cards.  I know that is very controversial on personal finance sites, but I really do use my own credit cards for everything I can charge.

My Cards

My husband and I have a few cards, but we only actually use two of them.  Our Discover More card is used for almost everything since it gives us 1-5% cash back depending on what we buy.  We use that cash back for fun splurges, Christmas gifts at the end of the year, or to buy discount gift cards to places we go anyway like Bath and Body Works or Chili’s.

Our Pentagon Federal Credit Union Visa is used solely for gasoline or if a business doesn’t accept Discover.  Usually that means we get our 5% cash back for gas and then use it a couple of times a month at Subway.

Why We Use Credit Cards

Since my husband and I only buy what we would have bought with cash anyway, getting any cash back at all just ends up being a bonus.  We’ve never carried a balance on any card, so we’ve never even paid a penny in interest.  The key is to be honest with yourself.  If you use your credit cards as you would cash, then they are a great tool in my opinion.  If you let them use you to try to fund a life you can’t afford, then they are a supremely bad idea for you.

Other Options

If credit cards and you just do not mix, there are other options too.  Some people use prepaid cards for online purchases.  You can visit pockit.com or other sites to see if that idea may work for you.  Cash is a favorite for a ton of people, but you may have to limit where you can purchase things from.  Overall, you just need to find what works best for you.

Do you use credit cards?  Or are you on a cash only diet?