I see no purpose in ever using credit cards for anything other than business. It is the worst situation you could ask for permanently, it's like paying double the value for an item purchased with a credit card, unless you can diligently pay the balance owed before the interest is applied, which I don't know anyone that does.
I've paid off my cards - 100% - since 1999.
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The trick with these cards is to make sure you don't use them to buy things you could not pay cash for in the first place. That's it. That's the big secret.
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If you can't pay NOW you can't afford it. That's it.
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+1 Bingo. My wife and I must be atypical, because through thick and thin (and that includes a fair amount of thin) we have always bought and paid for our lifestyles in the same month.
In response to Arney wondering why a credit card issuer wouldn't want a customer who pays their bill, just compare: 1 million card holders who all buy and pay for things on time: you make the credit card transaction rate of return from the vendors, which is 3-5%. Or, 1 million customers who all carry a balance at an average of 13.5% (which would be low) but 95% tend to be good for the debts. You make 13.5% APR (minus credit defaults, which should be limited by the credit limits applied), plus the 3-5% transaction fee from the vendors. Only when you start looking at the combination of higher and higher credit limits and higher and higher default rates does the credit card industry begin to look at the value of good, old pay every month customers. Similar economics account for the mortage industy, which is similarly messed up right now.
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