Credit Cards vs Debit Cards - Why You Should Use One Over the Other
When you’re considering whether you should use credit cards versus debit cards, you probably think that debit cards are the better option.
Guys, I’m going to give you 3 reasons why you should always use credit cards over using your personal debit card:
Protection on products
Ability to charge back on products and services
Points & signup bonuses
Let’s look at each of these in detail.
Credit Cards Give You Protection on Products
Many credit cards will extend the original manufacturer warranty for up to an extra year for purchases that are covered and made on an eligible card.
For example, you purchase a new wide screen monitor on a card with covered purchases.
If something happens to it after the manufacturer warranty is up, then you can still get a repair or replacement because of the card you purchased on.
Another available card protection is return protection.
For American Express cards, you’re able to return eligible purchases if the seller refuses to take them back.
Lastly, there’s purchase protection.
As mentioned with the extended warranty protection, you can use this if your purchase gets accidentally damaged, stolen, or lost.
Credit Gives You the Ability to Charge Back on Products and Services
Charging back on a product, like our monitor example above, means that you can get your money back if that monitor doesn’t work as advertised.
Another part of this ability is with services – if you contract with a person or company to do something and they don’t do what they say, you can charge back on that service.
The ability to charge back with credit cards is a great incentive for you to purchase with credit cards, but it’s also an incentive for the credit card company.
Credit card companies make it very safe for buyers to use, something that is a huge benefit over using debit cards and definitely a perk over using cash.
Points & Signup Bonuses
One of the best things, I believe, that you can get from using credit cards over debit cards are the points and signup bonuses.
Most people are familiar with the travel points that can accrue when using credit, but many cards also reward other points, such as:
Points back on groceries
Points on gas
Points at the gym
Points on buying clothing
Points on paying bills and utilities
As a credit card example, using a Chase Sapphire card, all of these expenses add up to 4,125 points every month; that’s 49,500 Chase points a year!
Using the Chase Sapphire Reserve card, you can redeem these points through travel – for example, if you had 74,250 points saved up, you could take 3 round trips from Seattle to Cabo in a year!
Another great benefit are signup bonuses.
For example, if you are approved for the Chase Ink Business Preferred credit card, you automatically receive 100,000 points if you spent $15,000 on purchases in the first 3 months.
Guys, that's about $1,250 towards any travel plans you have if you redeem them through Chase rewards.
Using credit cards over debit cards gives you a lot of purchase protection, as well as many reward points for just using it to pay for products and services.
If you want to learn how to leverage credit cards, come check out our Credit Stacking courses and community.