The Advantages of Using Credit Instead of Debit

Not all of the cards in your wallet are the same. There are numerous advantages to using a credit card instead of a debit card. The kicker - all of them lead to more money in your wallet.

Your Credit Score Can Improve

What better way to help your credit score than using your credit card to establish a good record of making payments. Your debit card usage is not reported to the credit bureaus.

A higher credit score unlocks doors - lower interest rates, more available credit and more. This will save you a lot of money in the end.

Credit Cards Offer Rewards

Credit card rewards come in many shapes and sizes. Whether it is cash back, travel miles or points, it all means more for you. This does not mean you have to spend more, simply use credit instead of debit on purchases you already make and watch the rewards pile up.

The perks don’t stop there. Many cards come with features that give you early access to tickets, concierge services and discounts for shopping and travel.

Credit Cards Are Safer

Credit cards have many built-in protections. If your card information falls into the wrong hands, the thieves won’t be able to drain your bank account. Fraud protection for credit cards is usually more favorable than debit cards, meaning less headache and worry if your cards is lost or stolen. Some credit cards automatically give you warranties on large purchases like appliances and protections for travel like hotel burglary coverage and lost luggage reimbursement.

In a Pinch

If you are tight on funds you can avoid the dreaded overdrawn bank account. Just be sure to be responsible and stay current on your payment. Also, some places such as hotels will only take a credit card or put a cash hold on your debit card.

If the benefits are so numerous, why do people shy away from using credit? The typical excuse is fear of overspending and racking up debt. A simple mind bend and some good habits are all it takes to overcome that notion. Think about it, if you are using a debit card there is enough cash in your account to cover the purchase. One of the best tricks to not get ahead of yourself is to start paying your credit card weekly. It only takes seconds using online banking or a mobile app. This little lifehack will put more money in your wallet now and for years to come.