Personal Finance

I'm 21, never missed a credit card payment, and prefer it over debit cards — am I on the right track?

David Beren

Published: December 15, 2024 2:02 pm

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

The credit versus debit card debate has been raging for decades and with good reason. Both sides are entrenched in their argument that one is better than the other. For many people, using a debit card is a way to control spending, while a credit card provides more purchasing power. 

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For one Redditor posting in r/personalfinance, the question around this debate is something they are considering as they feel responsible for paying off bills and don’t want debt. This said, for the amount of money they earn, they have an unusually high credit limit and are concerned, at their age, that things could go wrong very fast. 

What I enjoyed about this post, in particular, is that it highlights the risks and rewards of using a debit card. As someone who rarely touches his debit card, it also reminded me why I always prefer credit. 

The Scenario 

When you look at this scenario, it’s, thankfully, pretty cut and dry. What we have with this Redditor is an individual who highlights how much they dislike debt, so we immediately know whether a debit or credit card is better, which may not be related to overspending concerns. The Redditor even says, “If I cannot spend $1k twice, then I won’t buy it.” This tells us there is some level of financial discipline involved. 

Beyond this understanding, we know they have two credit cards with a total credit limit of $16.5k. This individual makes around $45,000 and turned 22 sometime in 2024. They indicate they have had the same bank account since they were 18 and have never missed a payment. 

Their credit adventure began with a secured credit card with a credit limit of only $250, which was later upped to $500. Over the next few years, an application was filed for a regular credit card, which was approved for an $11,000 limit, and the secured card was suddenly bumped to a $5.5k credit limit. 

Among the Redditor’s questions about the benefits of different card types, they also want to maximize reward points. 

The Recommendation 

Any argument around credit versus debit cards initially has to focus on self-control. With a debit card, you can only spend what’s in a bank account, so you must exert strong self-control. This is a definite pro for debit cards.

In the case of a credit card, the opposite is true, as you can spend right up to your credit line. This means there is a (strong) risk of overspending, which could result in debt. While the Redditor espouses his distaste for debt, this doesn’t mean it’s not an overall concern with credit card use. 

On the other hand, fraud protection on a credit card is vastly better. If someone steals your debit card, they can immediately access your money, which poses a major issue. With a credit card, the bank can instantly remove the charge, which means your credit line can be immediately re-opened. 

Another pro for the debit card argument is that you don’t have to worry about interest if you carry a balance. However, for this Redditor, who pays off their credit card every month, carrying interest doesn’t appear to be a major concern. 

The Takeaway

Ultimately, while I’m not a financial manager, I can say that I wholeheartedly agree with Redditor that people should stick with using credit cards. Credit cards’ benefits in rewards, fraud protection, and cash-back bonuses vastly outweigh the pros of a debit card. 

The only real pro with a debit card I can find is that some smaller retailer shops won’t charge a fee using a debit card, but this is infrequent enough in my case that it wouldn’t even factor into a decision. Given this, the Redditor should stick with credit cards and maintain their financial discipline into the future. 

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.