There is no great answer to the question of whether you should use credit cards or not, but there are a few things to think about when you are considering applying for one.

Payment – Are you going to be able to pay off your credit card each month?  If you do not think you can, then you may want to avoid getting a card.  Interest can add up very quickly, and the minimum payment will not get you very far.  In Canada, the credit card statement tells you how long it would take you to pay it off if you only make the minimum payment each month – a balance of $300 would take 2 years, 8 months (19.99% interest)!

Purpose – You may think that the purpose of your credit card is to allow you to purchase things but people apply for credit cards for many reasons.  For some people, they are using their credit card to establish a credit rating as they do not have one.  Others use their credit cards to be able to better track their spending.  Another group uses a credit card to redeem free rewards and products.  Whatever your reason, you need to know what it is to know if a credit card is going to help you accomplish it.

Rewards – Many people use their cards for various rewards. But is the card really worth it, especially if you are paying annual fees on it?  For instance, I recently got a card that decreases the amount of points I need for a flight.   When I calculate the cost of the points I am saving versus how much the annual fee is, the fee is significantly cheaper.  This is just a temporary card for me though and I will cancel it once I am done with my traveling.