The benefits of using credit cards over debit cards
Bottom Line: I've long been an advocate of learning financial discipline (not abusing credit and paying off your cards monthly) and making credit cards a cornerstone of how you transact. Once you're able to master financial discipline this way - there's nothing but upside to you charging everything you possibly can. Among the benefits of doing so...
- Improved credit history
- Improved credit score
- Record rewards programs
- Protection against losses from fraudulent purchases
- Recourse if a service provider doesn't follow-through on their work
For the most part, those are generally known by those who're inclined towards using them. But there are plenty of other protections that come with most cards that are often forgotten & could save you from wasting a bunch of money on warranties, certain insurance products & the like. Among the most overlooked benefits most credit card holders have:
- Extended warranties (many cards offer 2-year protection for whatever you're buying on your card)
- Purchase security (virtually all cards will protect your purchases for 90 days if somethings breaks or isn't viable)
- Price protection (within a billing cycle - if a cheaper price becomes available on a bigger ticket item you can seek the difference)
- Return policy (all sales may be final at a store but if your purchase would need to be returned within 90 days - most cards will ensure you're refunded)
These provide plenty of additional reasons to prioritize credit cards over all other forms of payment methods if you use them like you would cash (paying them off each month). I charge everything that's possible to reap maximum benefits and protections & encourage you to do the same. If you can't trust yourself, that speaks to a different problem that you need to seek control over because financial avoidance isn't a solution, it’s a masking mechanism for bigger issues that will likely manifest themselves in the future.