When using a credit card makes sense

Those struggling with credit card debt may steer clear of credit cards out of fear of wracking up a large balance. There are some situations where using a credit card makes sense.

Consumers making an expensive purchase will benefit from the added protection cards offer, Vickie Smith of Lake Michigan Credit Union told ABC-affiliate WZZM. In case there is a problem with the purchase, the credit card company will usually look into the problem on the card holder’s behalf.

Using a credit card over a debit card makes sense when traveling, says Smith. Hotels and car rental retailers place holds on accounts that can take days to be removed.

“It’s just how much money do you have in that account that you’re willing to have held?,” says Smith. “If you’re at a hotel or an airline, and they’re holding the whole amount, it’s going to have a big impact on the money you have available.”

Whether using a credit or debit card, being responsible is key to effective money management. If a credit card is going to be used for payment, consumers should still make sure that they have enough money in their account to pay the bill in full.

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