 TITLE: The Simple Guide to Using Credit Cards CONTENT: When to Use a Credit Card\n-------------------------\nAlthough you have the option to use your credit card for all types of charges, it's especially wise to use it for online and expensive purchases. That's because credit cards come with strong consumer protection laws. The Fair Credit Reporting Act (FCRA), for instance, gives you the right to dispute charges for items you bought but never received, were not what you ordered, or were damaged.\nAnother advantage of credit cards is fraud protection. If someone uses your debit card, the money in your checking or savings account can disappear. The bank will likely eventually reimburse you, but there could be a delay. Conversely, if a thief charged up your credit card, typically none of your personal funds will be lost.\nIn most circumstances, the credit card issuer will catch the fraudulent activity, but if it doesn't, just contact its fraud department and report the matter. The issuer will remove those charges and send you a new card with fresh account numbers. In fact, the FCRA gives you 60 days from when you receive your bill to dispute incorrect or fraudulent charges.\nAnother great reason to use a credit card is to reap the generous rewards many cards offer. Rewards cards come in a few basic varieties:\n*   _Cash back cards_ allow you to earn back a percentage of the money you charge as a rebate. Depending on the card and program, you can earn upwards of 1% from each purchase you make.\n*   _Point-based cards_ give you the opportunity to accrue points with every charge. The points can then be traded in for things such as airfare, products, services and gift cards.\n*   _Travel cards_ are similar to point-based cards, but the focus is on airline miles or hotel points. When you have enough miles or points, you can redeem them for airfare, hotel stays or upgrades.\nMost rewards cards offer introductory bonuses of cash, points or miles that will be yours after meeting the minimum spend, which is typically a few thousand dollars within the first few months of opening the account. You'll profit from these credit cards when you charge liberally and maintain a zero balance, paying off the bill each month (otherwise, finance fees will erode the value of the rewards). Some rewards cards offer increased cash, points or miles when you spend on rotating categories or at certain stores.\nDepending on the rewards card, you may get additional perks, such as concierge services, waived checked baggage fees, free entry into airport lounges and extra insurance products. Keep in mind that the better the benefits, the more demanding the qualifications. Some rewards cards charge an annual fee, though you'll come out ahead if you use the card right and maximize the perks. END