Reply to Stupid Question: how does credit card work

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I recommend setting up an automatic payment, in full, every month from your bank account. [/quote]

That may be the best approach if you travel a lot or otherwise have trouble paying your bill on time, but I think it's a lot better to look through your credit card bills before scheduling payment. (I do have electronic reminders that I need to pay, so I get wanting to be on autopilot a little.)[/quote]

I agree with this. It's best to think of the card as merely a convenience. Never spend more on it than you would from your own checking account, and pay off the balance completely every month. Interest fees are a ripoff.

You also enjoy some level of protection with a credit card - if someone uses your card fraudulently you will usually not be responsible for the amount they spent. I bought a computer yesterday and I had to confirm that it was me making the purchase before they would let the charge go through. A small inconvenience, but it's great to know they're looking out for me.

I had a Chase card for years and it was fine, but my husband urged me to get a card that earns rewards, so now I use a Capital One card, and will eventually use the points to buy things I want or need (like airfare or things for our kid). [/quote]

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