I have to do a binary logistic regression. I have a set of 7 independent variables. 4 of them are binary variables and the other 3 are categorical variables. The categorical variables are divided into 4 levels. For example, mode of payment: cash, internet banking, debit card, credit card.
I am confused whether I should make 4 columns with 0-1 dummies or just to code them 1, 2, 3, 4. What would be the right method for these variables