Quoted from flynnibus:
You don't pay interest on a credit card unless you don't pay your balance.
You don't worry about being late if you live within your means. You shouldn't need a hard limit like 'card declined' to know how to do that.
By using the credit card you can manage your cash flow in and out much better.. AND get paid to do it (1-2% right off the top).
Using credit cards does not mean 'spend more' - it means manage your cash flow better. There is no reason to pay cash for everything as a consumer when they are willing to take credit at their expense.
Debit cards are getting better with CC-like 'fraud protection' but you still have to deal with your actual cash being out or locked up... when you don't with Credit Cards.
I learned all this when I was 17.
My issue was back in 08 when I was living on paying off my Amex every month, interest free. Almost never used my debit card. When my bills kept being mailed out later and later ( post marked), finally, they whacked me for fees and late charges ( I paid online, same day I got my bill!), they fixed it, but then next month I got my bill 3 days after it was due! Finally cancelled it, and resumed using my debit card.
My wife ran into trouble in 01, was barely making minimum payments, she tried to hide it from me, turned into 10,500 bill with 28% interest! I paid it off, but they treated ME like an asshole during negotiations, and I told them the whole story, they couldve cared less. I paid full interest, ended up being about $12000 by the time I closed the account.
When I cancelled the card, 2 months later they were asking me to come back. Soured me BAD on cc's.
I've always had 740 and up credit and live well within my larger means. You'd be surprised how the money adds up when all you do is work and sleep ( when I can!).
Just like that 12 grand fiasco, this $4750 is considered gone, gone, gone! I couldn't take time out of work to chase after it anyways! My garage would collapse into a black hole without me there!!