Why should you leverage your credit?

Everyone is worthy of credit of some amount. An 8 year old with no income could potentially borrow some money from a lender if they think that the risk is worth the potential return.

As I've gotten older, my credit lines have increased and the lending terms have gotten more attractive. Credit card companies think that they can make money from the interest that I would potentially pay if I become a regular user of their credit card. For that reason, they are willing to offer me some incentives to sign up for an account. The incentives I capitalize on are 0% APRs and bonus airline miles.

If I receive a credit line of $10,000 with a 0% APR for one year and I want to invest that money with the absolute minimal risk, I would put it into my ING Direct savings account and earn 5%, which comes out to $500 a year or $41 per month (enough to pay for your internet connection, a cell phone bill or maybe a few dinners out).

Credit card companies associated with airlines mileage programs generally offer 20,000 miles after your first purchase. Domestic flights are usually 25,000 miles, so you're almost getting one domestic flight for free.