Tips + What NOT To Buy

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In this article we will cover what to use your credit card for and when you should NOT use it.

Credit cards can be great, give a ton of perks, great short term loan, and can help track your spending.

They can also be your credit’s worst enemy. Late payments, overspending, and going into debt can hurt your credit.

What To Buy With A Credit Card – The Truth

The truth about credit cards lies somewhere between these two extremes. As long as you manage them well, they’re worth having. But if you don’t completely pay off your bill at the end of the month, you’ll owe an enormous amount of interest on the remainder, usually about 14 percent.

This is what’s known as the annual percentage rate, or APR. Credit card companies also tack on a whopping fee every time you miss a payment—usually around $35. It’s also easy to overuse credit cards and find yourself in debt, as many American credit card users have done.

This isn’t meant to scare you away from using credit cards. In fact, instead of playing defense by avoiding credit cards altogether, I want you to play offense by using credit cards responsibly and getting as many benefits out of them as possible.

When I was traveling with my fiancée to see her family in Dubai, I surprised her with a three-night stay at a resort in the desert that could only be described as 7-star. We had a private villa in traditional bedouin style overlooking the Dubai desert with a private pool, and all meals at the resort were provided. The whole experience easily would have cost $2,000-plus a night, but I did the whole thing for free with points.

—NATHAN LACHENMYER, 29

I recently booked 2 round-trip tickets from San Francisco to Italy for a 2-week vacation this fall. The flights were completely free with credit card points!

—JANE PHILIPPS, 30

In the past year I’ve flown business class to Spain and stayed at luxury hotels for a week, flown round-trip business class…

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