Here’s my take on credit cards. Use a credit card only if you pay off the balance each month. Otherwise you are paying an interest rate that will eat you alive. If you pay off the balance each month, there can be advantages to using a credit card: cash back or travel rewards on specific cards, additional warranty periods on products, fraud protection, and the ability to dispute a purchase. Be careful because it’s tempting to spend more with plastic than cash.
Which card should you use? Here are my top two:
The Citi Double Cash Card is a MasterCard that gives 1% back when you make a purchase and another 1% back when you make a payment for 2% back. The card is simple and has no annual fee.
The Citi Costco Anywhere Visa gives 4% back on gas, 3% on restaurant and travel, 2% at Costco, and 1% on everything else.
Compare the best credit cards by category at http://www.creditcards.com/top-credit-cards.php