I was getting by quite well without credit cards for almost 10 years until a business trip required that I rent a car at an airport. I could not do it with a debit card. Gas pumps will often hold $100 when you pay at the pump, then credit the unused portion a few days later. Hotels can hold up to $1000 for incidentals. I finally just got a credit card.

In my credit adventures, I have learned that despite the high interest, credit cards are better than loans. You can pay down the credit card and work towards smaller minimum payments. Loans, on the other hand, require the same payment from beginning to end, even if you make extra payments.

I have also learned that 0% interest deals are a bad deal because you don't choose the payments. Just like installment loans, you are locked into a payment schedule.

Lately, I find myself analyzing credit opportunities for the overall impact on my cash flow. Despite the bad reputation credit cards get, I find them to be the best option so long as you maintain a low average daily balance, or no balance at all.

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