What credit cards do you use?

"other perks that might justify its higher up-front cost."

What costs? My AmEx Blue Cash has no annual fee, brings me a lot of cash back every year and offers all the perks.

Sometimes I use the CC up front and then I borrow against my 401k, pay off the cc balance, and pay myself back at a higher interest rate than I can otherwise get from money market.

One thing is for sure, the use of CC will only get more and more expensive.

"use of CC will only get more and more expensive."

Only if you keep balance, otherwise you gain money - cash back plus delay between purchase and CC due date. In addition you have CC protection that you won't have paying cash or by check. It is like any other tool - there are right and wrong ways of using it.

That cash you are getting back is built in, pre-paid, and I personally would not ever rely on CC protection as a reason to use a CC, but I do agree with you about carrying a CC balance. I used to agree that cards can be a tool, but not any more. This is not to be confused with a debit card which I find to be a much more useful tool. Since the banking melt-down CCs are looked at by the banks as a way to load up fees, and they have done a great job of it before the new regulations kick in to stop them. Next up on the chopping block will be free checking, and probably interest-bearing checking, as these are not funds the banks can count on as part of their lending reserves.

What do you mean by "built in" and "prepaid". My card costs me nothing while it gives me back about $1000 a year.

Debit card is not useful to me since it doesn't offer same protection credit card does (fraudulent use, identity theft etc.). I'm not afraid to use credit card over internet but I would not use debit card.

Any dispute, I might have with a store that sold me defective item or refused return is arbitrated by credit card company that applies back-charges first and then store has to prove the right to get my money. No such luck with debit card (same as cash), cash, check etc.