Dh and I have one cc each that is connected to our joint account. We don't use them very often, but we both feel strongly that it is necessary to have one. Because I live in Germany and travel around Europe and occasionally back to Portland, I feel MUCH safer with a credit card in hand. You never know what strange things could happen while traveling, and should any emergency or situation occur where I need a hotel, an immediate flight, etc., then I can charge it to my credit card and be on my way. No hassle, no worry.

We also use them for online purchases - Amazon, etc. - and pay off that balance every month.

I don't think it's naive to live without a cc if you have a lifestyle that allows for that. I would think it naive to live without a cc in my situation though - any travel abroad just makes more sense with a credit card.

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From what I understand, not having a credit card can hurt your credit rating, as can making late payments. I think it is using the card that gets you good credit, not necessarily carrying a balance. We each have a card and we use them for all of our purchases (cash is more tempting for us) and pay them off in full every month.

I'd suggest getting two cards - one in your name, one in DH's name - because credit reports are done individually and you both need to have something there. There are some sad stories out there about women who were widowed and had problems getting credit accounts and such because everything had always been in the husband's name.

Use each card every few months, and pay the bill off in full when it comes - apparently, if the card lays dormant for six months or so, it doesn't really "count" as much toward your credit score, so regular use, even if it's just a tank of gas every few months, will help. However, everything I've ever read says that carrying a balance does not help your credit report. It just costs you money. Other than that, if you want to leave them in the safe deposit box, that's fine. Just be sure that you can actually get to them when needed, in case there's an emergency outside of regular banking hours.

Have you checked your credit reports lately? Everyone's entitled now to one free report per year from each credit reporting agency, and it's a good idea to check them regularly and make sure that there aren't any errors.