Why I prefer to use credit cards...

In 2008 I wrote why I use credit cards here. Back then I had just two credit cards.

I still use Discover for most of my purchases as well as most of my online shopping. Usually they have 1% on most purchases and 5% on certain purchases which vary from month to month. With online shopping you can earn up to 20%. I pay my balance in full every month, so I never pay any fees.

Last year I earned $650 in different gift cards. So far this year I have gotten $300 worth of gift cards.
I usually get Lowes gift cards for my gardening. Starbucks for my daughter's Starbucks coffee addiction. Macy's, TJ Max, Bath and Body Work and Old Navy for shopping sprays and gifts.

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My second card is MileagePlus Master Card. I do not use this card much anymore. I only pay my electric bill with this card. It slowly accumulates some points. When I opened this card, I've got bonus points and I use it a lot. So way back before Discover card I accumulated enough points to pay for my mom's round air ticket to Russia. I believe now I have enough points for one USA travel ticket.

My third card is Kroger 123 rewards card. I use this card only for shopping at Kroger and for gasoline at Kroger gas station. It gives me a great discounts on gasoline, accumulates rewards points and very valuable coupons which are tailored to my purchases.

Last year I opened 3 cards with retailers.

Kohls. Kohls runs lots of promotions, such as $10/25, $10/50 or even $10/10 coupons, send bunch of extra coupons and I get extra 15-30% as a card member.

Victoria Secret. I mostly shop at VS when they have a good promotions. As an angel card member you get more coupons and promotions. So many more free panties and discounted bras. :)

Palais Royal. I was shopping at Palais Royal because they keep sending their $10/25 coupons and then one day when I found lots of stuff I liked, the cashier signed me up for the card for extra discounts.

As I mentioned early all my cards have no fees and I pay balance on each card in full. I use my cards very wisely. I am looking for another card to add, so I can utilize 5% offerings and earn more points.
By using various credit cards, I keep my balances low and it's actually good for my overall credit score.

Also I usually carry only one or two credit cards with me, keeping the rest at home. I plan my shopping trips and only take certain cards with me when I plan to use it.

You have to have self control and discipline in order to use credit card rewards without paying any fees or overspending.