I dont want to get in debt?

Question

Whats the best way and most beneficial way to use a credit card?

Answer 1

Simple. Don't take cash advances on it. Don't run a balance (pay off the full amount each billing cycle). Use one that provides you with some benefit (I use the Discover cash back gas card which pays up to 5% on gas purchases). Always pay on time and never buy something on it that you can't pay with cash unless it's critical for survival (few things meet that requirement for credit card purchases!)

Answer 2

The best way to use credit wisely and build a good credit history to use the card to make small purchases and pay off the balance every month. The best way to do this is to use it to purchase gasoline. It is an expense that is relatively low and something you could pay off every month without a problem. Some gasoline companies have their own Visa or Mastercards that would even give you a 1-5% rebate on the gas you purchase, in which case you would me making money off of it.

Answer 3

To avoid debt, the ONLY good way to use a credit card is for target practice. If you spend less than you make, you NEVER need credit. If you spend more than you make, you are, by definition, going in debt.

Answer 4

The best way is to not use it at all. I get by with just my debit card for regular stuff. The credit card is in my dresser, for just-in-case. I only use it for air lines tickets, if I can't use the debit card, and for car rental. But I pay it off, before I accrue any interest. The c/c companies hate guys like me, I use their money for free, I don't pay any interest, and I don't pay an annual fee to use their card.
One of the best pieces of advice is to stay with in you means: pay cash for what you need.

Answer 5

Never charge anything on the card that you cannot pay in full when the bill is due.