In the credit card world, the debate between debit and credit has been going on for seemingly forever and shows no signs of slowing down. There is no question that people on both sides of this debate can argue over everything from racking up debt to not having any kind of purchase protection.
This is exactly what one Redditor is focused on in r/personalfinance when they talk about why there are “no cons” to using a credit card in your life if you are fiscally responsible. While it’s easy to say that this Redditor’s point of view is debatable, there is a strong argument in favor of credit over debit.
On a personal level, I try to use my debit card as little as possible. While it’s in my wallet, I can’t remember the last time I used it as living with credit cards and paying them off monthly is the way to go.
The Redditor’s Take
Writing a fairly lengthy debit card takedown was the name of the game for this Redditor as they looked to emphasize all the ways credit cards are better. While I don’t know if I agree with the Redditor who said that there are “no cons” to using a credit card, it’s hard argue against the idea there are more benefits to using credit over debit.
In this case, the Redditor points out the biggest argument for a credit card, which is that it’s safer to use as it doesn’t have direct access to your bank account. Unlike a credit card, if a waitress at a restaurant accidentally types out the wrong amount at a restaurant as a tip or for the balance, money is automatically deducted with a debit card.
This isn’t going to happen with a credit card, as you are protected against this type of activity since the money isn’t immediately withdrawn. Instead, you just call your credit card company and let them know about the issue and they will handle everything.
Additional Credit Card Benefits
Builds Credit
While Dave Ramsey might like to advocate against credit cards as a way to quickly rack up debt, there is a counter-argument to be said for credit cards building up credit. It’s far easier to purchase (or lease) a car, buy or rent a home, and even get more credit cards when you have a strong credit score. Not only will you get lower interest, but you’ll also get a larger credit line, which means more spending power.
The most important thing is to never miss a payment. This can go a long way toward building up your credit score, as can paying off your balance every month. This is the best way to build up credit quickly.
Cash-Back Rewards
In the world of credit cards, one of the biggest perks and an argument debit card users can’t shoot down is the idea of rewards. When you think about how much money you can earn just for doing the shopping you are already doing, you can get all kinds of benefits from the different cards you have.
Whether it’s a flat-rate, tiered, or rotating category, most cards offer unlimited rewards and they are hard to ignore. Personally, my family has earned upward of $1,000 annually with all the spending and shopping we do on credit, which is pretty much everything but our car payments and mortgage.
Reddit Comments
Unsurprisingly, in the comment section of a Reddit post, there is always a lot to learn, specifically around the idea that Europe cares less about credit scores and more about payment history. In other words, two posters from the Netherlands and Germany indicated that it didn’t matter about your credit score, and neither poster knew if it existed.
The difference between Europe and the US is that in Europe, you are a good customer until you prove otherwise, while the opposite is true in the United States. Other Redditors simply disagreed with the original poster, specifically about people using them responsibly, saying that people don’t use them responsibly and debt can quickly rack up.
The bottom line is that even if the comments don’t agree with the original poster’s assertion, there are no downsides to a credit card, and everyone seemingly agrees that there are few reasons to choose debit over credit.
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