• During a financial emergency – If your furnace breaks and the weather is supposed to fall below freezing, what do you do? Because not many people have access to a large sum of cash – especially in a pinch – credit cards are a popular choice for getting us through life’s unexpected financial emergencies. Credit cards may also have lower interest rates and more liberal repayment terms than financing a large purchase through a company, so it pays to bring out your credit card during these times.
• When making a large purchase – If you have a credit card with a low, fixed interest rate or a credit card with a low, promotional rate, it may make good financial sense to use it to make a large purchase. For example, if you have a low, promotional rate on your credit card and you know you can pay off your purchase during the promotional period, you may end up being able to make monthly payments without interest. In other words, it may be a great opportunity to make that large purchase you’ve wanted!
• When traveling – When traveling, especially abroad, it just doesn’t make sense to carry cash. If you lose cash, you are not protected. We love credit cards for traveling because you are protected again credit card theft or identity theft, and you automatically get the conversion rate when traveling to countries with different currencies. Plus, the convenience of a credit card is unmatched when traveling! From booking hotels and airlines to car rentals and dinner reservations, a credit card is the most practical — and often the only accepted — form of payment.  Don’t forget that credit cards may also serve as car rental insurance, and can be easily replaced if lost or stolen.

It may be time to call it quits with your credit card if:

• Your interest rate continues to climb, regardless of your solid credit history. If you have proven yourself to be a loyal customer and have always paid your bills on time, yet your creditor doesn’t seem to recognize this, you may consider finding another card that better suits your excellent credit history and solid spending habits. However, if you’re not ready to call it quits just yet, try calling your creditor and requesting a decrease in your interest rate. Often times, creditors will accommodate your request if you have a solid history to back it up.
• Your rewards don’t fit with your lifestyle. If you are working hard to earn rewards, only to have a pocketful of rewards that don’t really mesh with your lifestyle or spending habits, it may be time to find another credit card with rewards that are better suited to you. What’s great about today’s rewards credit cards is that there are plenty from which to choose, so it’s quite easy to find a rewards card that rewards you for things that are of interest to you.
• Your credit card’s terms and conditions are as long as the last novel you read. The CARD Act has provided consumers with plenty of transparency regarding their credit cards. However, it has also resulted in exhaustively long terms and conditions that are as easy to read as twelfth grade algebra. Plus, you may be facing new changes to your account nearly every month, thereby requiring you to read and reread changes in order to stay abreast of your card’s terms. You may therefore choose another card with more straightforward terms and conditions. It is often best to avoid rewards programs and cash back programs in this case and opt instead for a competitive, fixed-interest-rate credit card.

Many consumers, particularly over the past year and a half when creditors tightened their belts and denied credit to millions of consumers, have become jaded towards the credit card industry. Combine that with the new credit card legislation and the ways in which many credit card companies have found a way to skirt the current legislation, and it’s no wonder why so many consumers are now heading toward a “cash only” philosophy.

Although this can certainly eliminate much of the hassle and grief associated with credit cards, it does make establishing a good credit score very difficult to achieve.

The bottom line is that, in order to obtain a loan for anything from a car and home to a student loan, you must have a credit score. Often times, no credit is as often as detrimental as bad credit.

With that said, there are ways in which you can enjoy a relatively credit card-free lifestyle without jeopardizing your credit score in the process:

• Find one, great credit card with a low, fixed interest rate – Avoid dealing with low, promotional rates that will expire. Instead, do your research and find a card that has a low, fixed interest rate.
• Make regular purchases and pay them off each month – You must make purchases on your credit card in order to establish a strong credit history. You can simply make one or two purchases each month and then pay those purchases off when the bill arrives to begin building your credit score.
• Consider rewards to make your credit card purchases work for you –Credit cards can end up saving you big, provided you understand how reward credit cards work. Making purchases – and paying them off each month – may allow you to earn anything from cash back to airline points, so consider the advantages of credit cards instead of just the disadvantages.

Don’t assume that your travel rewards credit card is just as good as the competition, as travel rewards credit cards can vary greatly regarding their rewards, terms and conditions.

So, how do you know if you’re getting best rewards credit card? Start by looking for a travel rewards credit card that offers the following features:

• An attractive sign-on bonus – Many travel rewards credit cards now offer fantastic sign-on bonuses that lure customers to their card. Many sign-on bonuses include free companion flights or a large number of bonus points or miles when you make your first purchase. Because so many travel rewards credit cards offer great sign-on bonuses it only makes sense to find a particularly attractive sign-on bonus.
• Look for extra perks – Many travel rewards credit card companies encourage consumers to use particular retailers by offering double or even triple rewards points. Other travel rewards credit card companies also offer bonus rewards points for shopping at certain retailer categories, such as home improvement or travel-related companies, for example.
• Terms and conditions – Aside from the obvious travel rewards points and perks, it is important to pay close attention to the card’s terms and conditions. Often times, credit card companies offer great travel rewards upfront, but catch the consumer on the back end by charging high fees or interest rates. There is no reason why you can’t find a travel rewards credit card that has both attractive rewards and competitive terms and conditions – it is just up to you to find the card that best works for you.
• Weigh the card’s benefits – if you are a big spender then a travel rewards credit card is probably right for you, as you are likely to earn travel rewards more quickly. If you pay off your card in full each month then a travel rewards credit card is also probably beneficial for you. However, if you don’t spend much or if you are often unable to pay your card in full each month then you may want to consider a standard credit card with a low, fixed interest rate.

Unfortunately, whether we like it or not, the losses felt by many credit card companies and banks are simply passed onto customers in good standing. Although this certainly isn’t something that is said outright, many of us have likely experienced interest rate hikes and additional fees on our favorite credit cards over the last couple of years.

As a customer in good standing, you do have rights regarding interest rake hikes and other fees. In other words, don’t feel like you have no other option than to accept higher interest rate charges on your credit card if you have always paid your bill and kept your credit in good standing.

1.       Keep your credit card account in good standing – no matter what! You have little room for negotiation if you fail to pay your bill on time.

2.       If your credit card company sends you notice of a rate increase, immediately call the company to negotiate. Once again, if you have maintained an excellent credit history you will hold the cards regarding your interest rate. Ask the credit card company to maintain your current interest rate. If you have no luck, ask to speak to a supervisor and plead your case with him or her.

3.       If your current credit card company does not budge regarding your current interest rate, simply look elsewhere. If you have maintained an excellent credit rating, switching credit cards should not be a problem. Although obtaining credit may be harder than it was a year or two ago, individuals with good credit are still being sought out by creditors.

4.       Look for a credit card with a low, fixed interest rate or one that has a low, introductory offer. Also, look for a credit card that includes a low rate on balance transfers and or a low fee on balance transfers, as these costs can be significant, regardless of whether you have secured a low interest rate.

Bridge the Income Gap

Many small businesses use small business credit cards to bridge the gap between income and expenses. A revolving line of credit is important for many small businesses or start-up businesses, as this enables the company to continue operating the business, even when cash flow is an issue.

Search for a Low, Fixed Interest Rate

Small business cards are similar to traditional credit cards, as the credit card balances are subject to interest charges; therefore, it is extremely important for small business owners to shop around and find a small business credit card with a low, fixed interest rate.

Take Advantage of Online Tools

Small business credit cards may also prove useful to small business owners who want to track their weekly, monthly and yearly spending. Most small business credit cards offer a myriad of online tools to help small business owners track expenses. In addition, year-end account summaries are also very useful, as they enable small business owners to see the overall picture regarding their yearly expenditures.

Protect yourself Against Credit Card Theft

Like traditional credit cards, small business credit cards feature protection against fraud or credit card theft, as well. For many small business owners, the ability to check the account online is important, as they can monitor the account on a weekly – or even daily – basis to ensure that there are no unapproved charges on the card.

Include Additional, Authorized Users to the Account

Small business owners can also add certain employees to the account, thereby enabling them to purchase supplies when needed. And, because all expenses are tracked and accounted for, the small business owner does not need to worry about frivolous expenditures. For many small business owners that rely on employees to make purchases and order supplies, this account feature may prove extremely beneficial.

Keep Business and Personal Expenses Separate

For many small business owners, it may prove useful to separate business expenses from personal expenses, so it may be a good idea for small business owners to obtain a small business credit card and use it solely for business expenditures, thereby eliminating the problem of confusing bookkeeping.