You just described exactly how I manage my finances. My pension covers any expenses that can't be paid with a credit card. My SS covers my credit card spending - including any household bills I can put on a card. I pay that credit card off immediately upon my SS $ hitting my bank account. As far as the credit reporting agencies go - it looks like I always have a balance on that card, however, I pay NO interest. My credit card pays between 2-5% back. Those reward points can go against the statement balance or be used to shop on Amazon for The Magical Creatures. It works great. But you have to understand that just because you HAVE available credit on a card, you shouldn't rack up charges on it that you have no way of paying off. That was a lesson learned the hard way for me.

My previous financial philosophy, "I can't be overdrawn, I still have checks left." LOL