A lot of consumers use debts cards to make most of their purchases. Here are some reasons to consider using a credit card instead.
1. You’re missing out on rewards
You are leaving money on the table by not cashing in on credit card rewards. You could be earning cash back or travel rewards. These rewards can add up quickly as you typically earn 2-3% back. Many eCommerce sites like Amazon allow you to checkout with reward points.
2. Risk of fraud
While most credit cards have a zero fraud liability, the same protections will not apply to debit card transactions. Someone with your debit card could steal all the money in your account if you don’t notice or report on time.
3. No sign-up bonuses
Many rewards credit cards offer the chance to earn bonuses worth $500 or more if they meet particular spending requirement within a designated period of time. There are plenty of reward cards that have great bonus rewards without charging a fee.
4. Not establishing credit history
When you’re using a credit card and making regular purchases/payments that is reported to the three credit agencies — Transunion, Equifax, Experian. If you plan on paying off your card every month this is an easy way to establish credit history.
Final Notes
All good reasons to start using a credit card today, but before you switch keep in mind your budget and ability to pay off the card in full each month. All of the perks of a credit card won’t help you much if you end up having to pay the high interest rates most credit cards charge.