It’s a common money quandary: When should you bust out the plastic and when do you break out the benjamins? As it turns out, there’s a right and wrong time for both — and choosing the best payment method can actually result in not just dollars, but aggravation saved. Here, a guide so you never second-guess your choice at the register again.
Use credit if it’s a situation where you can earn points or cash back.
News alert: It is possible to pay for a vacation entirely in credit card points. That’s why it’s smart to use the right card (aka one that guarantees rewards) in situations where you can really rack them up. For example, the American Express Blue Cash Preferred card will earn you up to 6 percent cash back on groceries bought at any U.S. supermarket (maxing out at $6K a year). And the Chase Freedom can earn you 5 percent back (up to $1,500) in rotating categories — gas included. Just be sure to pay your monthly balance in full so you don’t gain points but lose dollars on interest.
