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I prefer free hosting. There is so much free hosting available if one really looks for it, it's never really necessary to pay for hosting. However if you really want paid hosting, then I like to use PayPal as it seems to be a universally accepted payment method in the hosting world. It feels more secure as well. In my case I like to use PayPal with prepaid Visa Debit Cards that one can buy and super stores. Like I'm quite nervous to connect my banking account with PayPal. Prepaid Visa Debit Cards have worked quite well for me with PayPal up to now although one never knows - this could change at any time.
I only use PayPal. I find it the easiest and most hazzle free way to pay for all of my domain renewals and Web services. I use prepaid debit cards that I get from a super market, and once they are used up, I just add new ones to my PayPal. I don't receive any funds on my PayPal as I only have it to pay for my Web services.