Before starting this article series, I want to acknowledge that some people oppose using credit cards and advocate that people use their debit cards or cash instead to pay for their purchases.
Depending on the setting, purchase, and financial need, I use all three, in addition to digital payment options such as Paypal, CashApp, Venmo, etc. However, my preference is to use a credit card.
This is Part 4 of the series.
Read Part 1: My First Credit Cards here.
Read Part 2: Using Credit Cards to Leverage Expenses
Read Part 3: What I Use My Credit Cards to Purchase
Credit Cards Versus Debit Cards for Purchases
From my perspective, using a credit card provides more travel protection. It increases purchasing power. If you wanted to buy something, and you only had $500 in your bank account, which is what your debit card will cover, but you need to purchase something that costs $520 and know that up I will have the resources to replace the $20 in a few weeks, you should use your credit cards. Personally, that’s what I would do. First, you can pay the money to owe over time for a small fee, the $500 in your account is still at your disposal in case of an emergency, and you might either earn miles or cash back towards your purchase which many debit cards do not provide.
I use my credit cards to earn money rather than spend money. However, this comes with caution. If you are not disciplined with your budget and don’t pay your credit card bill on time, using a credit card would not be a strategy for you. Instead, it is a financial tool you should use for your benefit and not get into any more debts.
Also, some credit cards track your credit scores and, depending on the amount spent each month and other criteria, you can see whether or not your credit score went up or down and by how many points. Also, you get an annual summary of my expenses, which I am surprised by each year.
Lastly, as you start using the credit card, you may receive many offers from other lenders. I have added some store cards to my wallet. However, I only use two primary cards for my purchases because it is easier to manage two cards.
If you are interested in learning about which cards, I currently have in my wallet, leave a comment or message me.