I hate to say this but if you're not making ALL your daily purchases with a credit card these days, you're losing money.
There are multiple cards, with no fees, that offer cash back (usually 1% with a no annual fee card), purchase protection, insurances, etc.
- I got over $500 cash back last year on my card.
- I had a rental car which my girlfriend crashed, the card company paid for the damage.
- A couple years ago I paid X-copper to fight a speeding ticket for me. Paid with my credit card. They went bankrupt before going to court. My credit card company immediately credited my account the full amount.
- I saved several hundred by being able to decline the insurance on a rental car a few months back for a week
- I automatically get an extra 1 year warranty on any electronics I buy with the card
- I pay it IN FULL every month and pay no interest on this money. Essentially I can buy something today, and not have to pay for it for at least 3 weeks.
The retailers are charged a fee to allow credit card payments. They build this into the price of their products. If you're paying cash, you're overpaying for your products.
As long as you're disciplined, they're a great thing. My girlfriend has a $500 credit card, so she always keeps $500 in her bank account, and buys her daily purchases with the card. I'm got an $8000 limit on my card so I buy stuff for other people that don't have cards, and I make 2% cash on whatever they buy! Thanks!