In which situation would it be better to use a credit card instead of cash?

A. Purchasing movie tickets

B. Purchasing groceries

C. Purchasing a computer

D. Purchasing gasoline

Answer: Choice C) Purchasing a computer

The other choices are either a small expense or a routine purchase that it's not a good idea to rely on credit, or else bad financial habits would form. Instead, it's best to only use the credit card sparingly in smart ways for large purchases. A computer is something you need but you only buy it fairly infrequently. As long as you pay off the balance as soon as possible, then it's smart to use the credit card.