For years I would use my debit card for nearly every transaction possible. I never liked carrying a lot of cash and felt that if I paid using my debit card it would be just as if I had went to the ATM and paid, but without having to have cash on me. Instant transaction from my bank account.
Horrible idea!
Thankfully (not really), my friend had been scammed using his debit card, and my attorney friend was explaining to him why it is wise to only use a debit card to withdraw money from an ATM.
Why is that? Well, it's actually quite simple. If someone has access to your debit card, then they can withdraw as much as they wish in cold cash from your account.
If you use a credit card, then you have the protection from your credit card company. Sure, someone can purchase items, but these items can be disputed. It's much easier to dispute a credit card transaction than it is to dispute actual cash dispensing from an ATM into someone else's hand.
So rather than using a debit card, I'd like the protection of using a credit card.
Now, if I am going to be ditching my debit card and using that only for withdrawing money from the ATM, then rather than using just any credit card, why not be rewarded for my purchases?
I wish I had been doing this much longer, it's truly a "no brainer."
Do you get rewarded for purchases using cash or a debit card? No.
Sure, credit cards allow you to spend money that you might not have, that's the trap, that's what "they" want you to do.
This isn't for people who plan on paying interest or more in life for purchases. This is for people who have the money in their account (much like going to an ATM if you think about it) and paying their credit card statement off as often as possible.
Whenever I can. For everything!
Again, do you get rewarded for using cash or your debit card? No.
I used my credit rewards card for every purchase that I could for one year. I accumulated enough points for a $400 cash reward which went back on my credit card.
Would I have been rewarded $400 for using cash or my debit card for a year of purchases? No.
I understand that people have credit card debt and cannot afford to do this. My advise is to get out of that debt. The credit card companies want you in debt. Beat them at their own game and get rewarded for it.
I pay off my credit card online probably once every couple weeks, it's just something that I do. I go online, login to my account, check my transactions and pay my bill.
I carry a $20 bill in my pocket and my rewards credit card, along with my license. The cash is just in case I need it for some reason, which is very rare these days. I should carry more for protection from a mugging or something like that, dropping a $50 bill on the ground and running would be better in a mugging situation than a $20.
Anyways, I leave my debit card at home and only take it out when I need to go to the ATM to withdraw money, again, rare. Note, I travel abroad so in certain countries it's easier or safer to pay cash than with a credit card, or certain places don't accept credit, such as little sketchy markets which I wouldn't feel safe swiping my card at anyways.
It's very simple. You don't get rewarded for using cash or debit and are at risk when using a debit card. It's up to you but if you can afford to pay off your credit card bill, then why would you not want be rewarded?
If you can't pay off your credit card, then maybe a credit card is not for you. However, the credit card company is loving you're type of business, you're their "target" audience.
If you have any questions, comments or concerns let me know.
Thanks!
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