5 Reasons Why You Should Reach For A Credit Card Instead Of A Debit Card Next Time You Pay

Ever wondered if using your credit card instead of your debit card could be a smarter move? Sure, credit cards require discipline to avoid revolving payment fees. But when used the right way, they offer more than just a way to spend — they provide a lot more perks. They have features like reward programs and protection for valuables that often go unnoticed. Here are five reasons to consider pulling out your credit card for your next purchase over your debit card or check card.

1. Chargeback Options

Ever had second thoughts about a purchase or spotted a suspicious charge on your statement? Here’s where credit cards shine with chargebacks. If a product doesn’t meet your standards, or you spot a fraudulent charge, you can dispute it with your credit card issuer. While a refund comes directly from a merchant, a chargeback, initiated through your card issuer, might just get your money back when a refund doesn’t cut it.

2. Superior Protections

Credit cards pack a punch with built-in protections. Renting a car? Your credit card might cover rental car insurance. Trips can go sideways fast — trip cancellation and delayed baggage protections are there to have your back. Plus, many cards offer purchase protections against damage or theft soon after buying with your card, and some even cover your cell phone if you pay your bill with their card. Always check what your card offers; these perks can save you a bundle.

3. Extended Warranty Protection

Big purchase on the horizon? Your credit card might extend the manufacturer's warranty, often by up to an extra year. This is ideal for pricier buys like electronics and appliances. It might not apply to everything, but when it does, it can save you a significant amount in potential repair costs.

4. Lucrative Rewards

Using a rewards credit card effectively turns every purchase into a chance to earn something back. Whether it's accumulating cash back, racking up travel points, or collecting airline miles, these rewards can significantly improve the value of your spending. For instance, if you charge $3,000 monthly on a card offering 1.5% cash back, you could earn $540 annually just from regular spending. Some cards even boost this rate during the first year, potentially covering a good chunk of your holiday expenses or adding to your vacation fund.

5. Boost Your Credit Score

A credit card can be your ally in building a strong credit score. Keeping your balances low and making payments on time contributes positively to your credit utilization and payment history, two crucial components of your credit score. Many issuers also offer automatic payment options, so you never miss a deadline.