Credit Cards Are a Tool, Not Free Money — Learn the Difference or Pay For It

A credit card used well builds your credit history, gives you purchase protection, and earns rewards on money you were going to spend anyway. A credit card used poorly charges you twenty percent interest on yesterday's impulse buy while you make minimum payments that barely touch the principal. The card itself is not the problem. The problem is treating future money as present money.

If you cannot trust yourself to pay the full balance every month, use a debit card instead — there is no shame in that. If you do use credit, follow one rule: never charge anything you do not already have the cash for. The rewards are only worth it if you never pay interest. The moment you carry a balance, the credit card company is earning rewards on you.