For the past 13 years, I’ve relied solely on credit cards for all my shopping. This might sound surprising to some, given the ongoing debate between credit card enthusiasts and die-hard debit card users. Yet, my decision wasn’t just about convenience—it’s a deliberate strategy with significant advantages.

Why I Exclusively Use Credit Cards

1. Maximizing Rewards and Cashback

Every dollar I spend earns something in return. Whether it’s cashback on groceries, points for travel, or discounts on dining, credit cards turn everyday purchases into future benefits.

Statistic: A 2023 Bankrate study revealed that 47% of U.S. credit cardholders actively use cards for rewards, earning an average of $150–$300 annually in cashback or equivalent benefits.

For instance, I use a cashback card for essentials like gas and groceries, which adds up to significant savings over a year. It’s like getting paid for what I’d spend anyway. (Last year, I made about $4,000 in rewards, all invested in my brokerage account. It’s a win-win.)

2. Enhanced Consumer Protections

Unlike debit cards, most credit cards offer:

• Purchase Protection: If a product arrives damaged or isn’t delivered, I can dispute the charge.
• Fraud Protection: Federal law caps liability at $50 for unauthorized charges, and many issuers waive even that.

Statistic: The Federal Trade Commission (FTC) reported that 70% of fraud victims recover their funds faster when using a credit card compared to a debit card.

3. Credit Building Benefits

Consistently paying my balances in full has boosted my credit score over the years. A strong credit history isn’t just a number; it has tangible benefits:

• Lower interest rates on loans.
• Easier approval for mortgages or rentals.

Statistic: According to Experian, people with excellent credit scores (above 750) save an average of $45,000 in interest costs over a lifetime compared to those with lower scores.

4. Convenience in Budgeting and Tracking

Credit cards provide a consolidated statement of all my expenses, making it easy to analyze and adjust my spending habits. Many cards come with budgeting tools, which further simplify money management.

Example: Using my card’s app, I set alerts to notify me when I exceed my grocery or dining budget for the month. This helps me stay financially disciplined.

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Why I Don’t Use Debit Cards

1. Limited Rewards and Protections

Debit cards lack the robust perks credit cards offer. While they do provide basic fraud protection, the recovery process is slower and often more cumbersome.

Statistic: The American Bankers Association notes that it can take up to 10 days for funds to be reimbursed to a debit card after fraud. In contrast, credit card disputes are often resolved within 3–5 days.

2. Potential for Direct Account Impact

With debit cards, fraudulent activity directly affects my checking account balance, potentially delaying bill payments or other essential transactions. This never happens with credit cards, where disputes don’t tie up your actual funds.

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How I Make It Work

1. Paying the Balance in Full

This is non-negotiable. Carrying a balance leads to interest charges that negate the rewards. I treat my credit card like a debit card—spending only what I already have in my bank account. Always, and I do mean always, set your cards to Auto-pay. This step is CRITICAL.

Tip: Set up autopay to avoid missing due dates. Many issuers also allow weekly payments, which can help control spending.

2. Choosing the Right Card

The card you choose should match your spending habits. I researched extensively to find cards offering high rewards for categories like groceries, travel, and dining.

Example: For frequent travelers, a card offering miles and no foreign transaction fees is invaluable. For families, cashback on everyday purchases like groceries and gas could be more beneficial.

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Conclusion: Why I’ll Never Go Back to Debit Cards

For me, using credit cards exclusively isn’t just a financial strategy—it’s a lifestyle choice that aligns with my goals of saving money, protecting my purchases, and building credit responsibly. While credit cards require discipline, the benefits far outweigh the risks when used correctly.

If you’re in the military, I highly recommend you apply for the AMEX Gold card to get started. 1. As a military member, your annual membership is completely waived due to the Military Lending Act (MLA). 2. It’s a good starter card with amazing rewards multipliers. Get started with my link: https://americanexpress.com/en-us/referral/gold-card?ref=MICHAH2Woo&XLINK=MYCP

If you’ve been hesitant to make the switch or wonder if it’s worth it, consider starting small. Use a credit card for one recurring expense and pay it off monthly. Watch as rewards, convenience, and protections elevate your financial experience.

What are your thoughts? Have you had success (or challenges) with credit cards? Share your story—I’d love to hear from you!

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Thank you for reading, and I’ll see you in the next post. Peace!

-Michael, with Military.Cash