Why I never use a debit card and why you shouldn’t either
I recently posted on my YouTube channel about how my husband and I saved $50,000 in one year. We were able to accomplish this by following a few different strategies.
One piece of financial advice that was I was given at 16 and have followed for years is to NOT use my debit card.
Instead, I solely use credit cards and maintain $0 in credit card debt.
I actually receive letters from my bank requesting that I use my debit card or they will cancel it. So, I sometimes use it to check my ATM balance.
Reasons why I ONLY use my credit card:
It’s safe
If my debit card gets hacked or stolen, every.single.dollar I have in there is gone. While the bank may be able to replace the money, it creates an entire mess waiting for the funds to be returned.
With my credit card, if someone were to make a fraudulent charge, I can simply call my CC company and get the charge removed. No big deal! My cash and bank account is safe.
I have found that Capital One has the BEST customer service. You aren’t having to haggle with automated robots, there are real people waiting to help you with any problems!
I get FREE money
My favorite part of using my credit card is all of the cash back I get. I have two main cards I use. One gives me 1.5% on all purchases and the other gives me 2% back on groceries and 3% on travel and gas.
I can use this cash back to directly pay my balance or can request a check to be deposited into my bank.
Right now, I am saving my cash back to purchase a first class ticket to Europe next summer.
Myths about credit cards that I often hear:
It’s a trap to get you to spend more money than you have
This is how CC companies make money but it doesn’t have to be that way. I only spend the money I have and would typically spend on my debit card. Just think of it has that, an awesome rewards debit card!
As long as you track your spending and don’t think of it as “free money”, you are fine!
Paying the minimum payment rather than the full amount helps improve your credit
Absolutely not. The only way to make a CC work for you is to pay it off in full each month. Paying the monthly payment not only damages your credit but it also means you are paying a sh*t ton back in interest.
The Bottom Line
If you are only using your credit card to purchase items you ALREADY have money to buy, a credit card can bring you financial security and free cash back!
I love my Capital One Quick Silver credit card and have been using it for almost 10 years!
Right now you can use my link to get the same 1.5% cash back on all purchases AND a $200 bonus if you spend $500 in three months.
You can use this for your groceries, gas, or even holiday shopping to meet your bonus.
$0 Annual Fees.