Simply Put:
Debit cards do NOTHING for you but waste your money. Spend the money you would with your debit card, but use your credit card instead. It’ll make you money AND build you credit.
Simple explanation:
Debit cards are good for 1 thing:
Withdrawing cash
A debit card will not give you cash back rewards nor will it build your credit score.
A credit card will do this. You will not only earn a set percentage back, sometimes upto 4% on gas or similar goods, but you WILL build credit.
If you’re gonna buy groceries, why not use a credit card and pay yourself back?
Simple math:
Let’s say you buy $100 even of gas per month.
Using a debit card:
You use $100 of your money and that’s it.
Using a credit card:
You spend $100 on your credit card and you owe your credit card company $100 before 30 days have expired. If you have the Costco Citi credit card, you made $4 on that single purchase.
Recap:
Using your debit you get nothing back. Using your credit card, if the Citi Costco card, you get 4% back and you will build your credit score. That’s a no Brainer.
Simple conclusion:
Using your debit card has no real benefit and actually is a waste of money. Using a credit card, in place of a common debit card purchase will give you some form of a percentage back and build your credit score. Even if your credit card doesn’t have perks yet, atleast you’ll be building your credit so that you can eventually get that platinum credit card.
When did you get your first credit card and what were the perks? Credit cards have changed drastically just in the last decade!
Simple Money 