What’s the “right” way to use your credit cards? Should they only be used to make large purchases? Clearly there’s no one-size-fits-all answer to that question. Everyone’s shopping behaviours are different. Everyone’s income levels vary. And everyone has a different susceptibility to credit card debt.

Let’s take a look at some situations when it’s a good idea to reserve your credit card usage for large purchases. Then we’ll look at scenarios when it might make more sense to use those credit cards for smaller or routine purchases as well.

When Credit Cards Should Only be Used for Large Purchases

There are a couple of situations where you might want to stick to large purchases with one or more of your credit cards. For example:

1. If you tend to get into credit card debt and struggle to get out again, using your credit cards only for major purchases you intend to finance over time might be a good idea. This way you don’t risk adding to your debt with everyday expenses.

2. If you have a low interest rate on purchases, you might want to reserve that specific card for large purchases only even if you make smaller purchases with another card. This way you can enjoy the low interest when financing a large purchase, but still be able to take advantage of interest free days with another card for your regular purchases.

When It’s Also a Good Idea to Use Cards for Smaller Routine Purchases

If you’re a more disciplined cardholder and you know you’ll pay off your regular expenses each month in full, there’s certainly nothing wrong with using your credit card to make those purchases. As long as you’re able to pay off those expenses in full regularly, there are potential benefits of using your cards in those situations. For example:

1. You might be able to earn rewards points if you have a card like the Virgin Flyer credit card.

2. You find it too inconvenient to carry cash with you for routine purchases.

3. You prefer the security and record-keeping benefits of using a card over cash.

While these are all valid reasons for using credit cards for everyday and even small purchases, remember they’re only valid if they don’t cause you to go into unnecessary debt.

There are many different ways you can use your credit cards. What you choose to do is always up to you. Just keep in mind that you don’t have to use your cards in the same ways that others do, especially if you worry about getting into debt. Equally important, it’s okay to use different cards for different purposes. If you have multiple cards they don’t all have to be for general use. Only you know your needs and your habits. The key is choosing the right credit cards that suit those needs and habits and then choosing the best way to use those cards — the best way for you that is.