It is wise to use a CC when paying with paypal, but because paypal must pay merchant fees to Visa/MC etc they default to funds in account when you send a payment. Sometimes I want to keep my funds in my paypal account, so this can pose a problem, right? Wrong! :)
Want to get around this? It's simple! Set up an email account (like email@example.com). Then, right before you pay someone with your CC, send that email address a "payment" of exactly what your balance is. A message will pop up saying that "the recipient has been sent a message explaining how to open an account, blah blah". Your balance will appear as zero, with the fictitious payment you sent to yourself "unclaimed". Go ahead and send the REAL payment with a CC or bank transfer. THEN, go and cancel the unclaimed payment. Presto! The funds are back in your paypal balance.