By Joe Vilanvera
In your quest for discovering the perfect credit card for your use some advice you are sure to encounter is to never, never use your card for every day purchases. You are not to use it for toilet paper, milk or dish soap.
Well, groceries are okay to put on your credit card if the amount tends to be substantial. But you get the idea. Don’t go out for toilet paper and wind up putting it on your card.
With the economy going down the tubes and unemployment numbers increasing weekly, good people are making some bad credit decisions. For many, those bad decisions involve using their credit cards for necessary staples.
When Should You Use Your Credit Card?
Before we go into any kind of discussion on when you shouldn’t use your credit card, let’s talk about when you should. Conventional wisdom dictates that credit cards should serve one of two purposes:
1. As a means to build credit. There is no need to borrow money to purchase a certain item you want. On the other hand, you are attempting to build up your credit and that can’t be done without digging out that dusty old credit card from the depths of the desk drawer and putting it to use.
2. As a last resort to pay for an emergency. When the unexpected happens, such as an engine failure in your normally reliable car while 1,000 miles away from home, by all means use the card. When your hot water heater blows up in the basement and fills it with scalding water, use the card. Nobody has $5,000 big ones lying around to cover such emergency situations and a credit card is a godsend here.
Why Using Your Credit Card for Everyday ‘Stuff’ Isn’t Always a Bad Thing
So, you should never use your credit card for all of that ‘ordinary’ stuff. That’s it. End of story. Right?
Life has a way of not always being black and white. There are gray areas lurking around every corner. Sometimes those every day staple items can add up to real money. Thanks to our country’s dark economy and employment picture, money can be in very short supply for countless families these days.
When it comes down to the choice of buying baby formula or not having any the next time your baby cries out in hunger, you are surely going to whip out that plastic without giving it a second thought. I hope you selected a credit card when you were shopping for one that earns you reward points every time you use it.
I’m not going to go into laborious detail over these reward points, because there are a multitude of methods credit card companies use to tally them up and certain usages that earn points and those that do not. Let us discuss here only the cards that earn points for buying stuff. Such points can be cashed in for numerous items. The more purchases you put on your credit card the more points are accumulated. You can even use your points to buy toilet paper and baby formula!
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