The Wall Street Journal recently posted an article detailing the "Five Ways to Use Plastic Wisely". As an individual that is sick of always hearing why credit cards are inherently bad from those that lack the willpower to control their own spending habits, I applaud the publishing or articles on smart-spending that the WSJ (among other media outlets) has been focusing on lately. It's the old "do guns kill people or do people kill people?" routine (do credit cards make you spend money you don't have or do you make that conscious decision?).

Sure, credit card companies have been known to use some pretty deceptive tactics (making way for the Credit Card Holders' Bill of Rights that just passed in Congress), but if you take a bit of time to learn about how credit cards work and read your terms, you can prevent any ill outcomes. Would you sign up for a $100,000 loan or mortgage without reading the terms and conditions? Of course not! A credit card is instant access to lines of credit and should be treated with the same respect as any loan or mortgage. Read on to view my take on the right way to use credit cards.

1.) Make Large Purchases/Purchasing Online

Use cards when making large purchases as the card issuer will usually back you up in case of fraud or product failure. Most cards will automatically double the warranty of anything you buy on it, up to one year. The same thing goes for shopping online, where a credit card transaction is usually the only option as far as payment goes. This also gives you a barrier against fraudulent charges in case you make a purchase at a disreputable site and get scammed in any way.

2.) When Traveling

Use credit cards when traveling to protect yourself in case of unforeseen events. Some cards have automatic trip cancellation insurance, or travel insurance. Cards also save you from having to carry around bundles of cash and/or travelers checks, and free you from the sometimes troublesome experience of exchanging money. Make sure you use a Capital One card as they do not charge you currency exchange fees while using your card overseas.

3.) When Buying Necessities (Emergencies)

Even if you are opposed to using credit cards, having at least one card on you at all times will save you when you run out of cash.Just remember to use the card for emergencies only and to not buy things based on your expectations of future income—that's how the economy became what it is today.

4.) When Using a Budget

Using credit cards is an easy way to track your spending. You get a report every month on how much you spent and where you spent it—that's a lot easier than writing every transaction down! Many cards even track what categories you spend in, which can help you in accurately gauging your expenses.

5.) When Building Up Reward Points

This is the main reason I use credit cards—in order to get something back. Because I have used primarily credit cards to pay for almost everything over the past ten years I have ended up getting thousands and thousands of dollars back. Free plane trips, gifts, cash back—all of this in return for signing up for and using credit cards. As long as you make sure that you don't carry any balance over 0%, these rewards make using a credit card the right way to go.