- Centurion Member
- Posts: 875
- Joined: Thu Apr 30, 2009 2:32 pm
- Location: Texas
You should absolutely be using credit as your first choice for payment for everything whenever possible as long as you pay off your balance in full and on time every month without exception and never exceed your credit limit.
Choose the rewards card that best complements the amount and type of spending you do. As long as you're comfortable with it, sign up to have your card paid in full automatically via a direct debit to your checking account on a date you select. Most cards will accommodate this. Monitor your card activity online to keep track of your spending and to detect any fraud at the first occurrence.
By using credit you will be helping your credit score. You also will be earning rewards such as cash back, gift cards, travel, etc. You will have greater protection as a consumer in the event an item you buy is faulty or a service you pay for is not fulfilled. Your cash will be protected in the event of fraud -- unlike with a debit card. You will get to float your debt for a month, earning interest on your savings until it comes time to pay the bill.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).
*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.