1. Do you buy everyday things on credit?
2. Do you buy everyday things on credit because you do not have cash (money in the bank) to do it?
3. Are you using your credit card regularly?
4. Do you buy more if you are using your credit card then you would otherwise?

If you answered yes to these questions, you may be on a slippery slope downward when it comes to credit use. Often people will get a credit card "for emergencies" or "for convenience" etc. However, if you start to use your credit card in order to buy groceries, and don't actually have the money to pay for those groceries, you are not using credit wisely. A good rule of thumb is to never use credit to buy things that cost under $100 individually. Credit cards are great to buy things you want protection for, like flights, or online purchases, where fraud might be involved, etc. However, groceries should never be put on credit. Credit is easy to spend because you are not accountable for it yet. If you are using credit, you may spend more than you have, because you can. So, if you are buying more because you are paying with a credit card, or shopping more often because of the ability it provides, you are using credit unwisely. Always spend as you would if it were cash, or you will get yourself in trouble with credit.

5. Are you using credit for the "rewards"?
6. Are you using credit because of a low or no interest introductory offer?
7. Are you using credit over debit or cash because of sky miles, or some similar incentive?

If you answered yes to any of these questions, you may not be using credit wisely. Many people will get a credit card because of a low introductory offer, or because they get reward points with it. However, soon you will justify unnecessary purchases because of the points you get from them, or because you aren't paying interest yet. Using credit cards for incentives, or for introductory offers is an unwise use of credit. Those end, or are of very little value. Are they worth debt? Are they worth high interest later?

While using credit does offer advantages, and while there are times, and emergencies when credit is needed, such as to purchase an expensive prescription because you got sick and have not enough money in your bank account to cover it, using it haphazardly, even if you pay your balance off, is unwise. There may come a day when you spend more than you planned, or don't have the money to pay off the card. Then what? Use credit for protection, for emergencies, and use debit for everything else. It offers the same protection, and is far less risky.