A 720+ Credit Score but Make All My Purchases with a Debit Card—Realizing I’m Missing Out
Key Points:
- A Reddit user with a 720+ credit score always uses his debit card for purchases.
- He realizes that he’s missing out on potential rewards and is considering switching to a credit card.
- Using a cashback credit card could help him earn hundreds, or even thousands, of dollars annually without extra effort.
A Reddit user recently shared that despite having a good credit score of 720+, he has always used a debit card for purchases. Now, he’s realizing that he could be missing out on opportunities to earn rewards, and he’s thinking about switching to credit cards for better financial benefits.
Why You’re Missing Out Without a Credit Card
The Reddit user is in an excellent position since his credit score qualifies him for nearly any rewards credit card.
- Using a credit card instead of a debit card for purchases can earn you cashback or other rewards, making your purchases cheaper.
- For example, if he spends $1,000 a month on a card that offers 2% cashback, he could earn $240 annually.
- Credit cards also help improve your credit score further, which can lower future borrowing costs like mortgages or car loans.
Additionally, credit cards offer better borrower protection compared to debit cards.
- With a credit card, he could get benefits like free return protection, extended warranties, and more.
- Credit cards also allow you to dispute charges and get assistance if there’s a merchant issue.
- If he can avoid debt by paying off the balance in full every month, the perks far outweigh the drawbacks.
Why a Cashback Card Could Be the Ideal Option
Since the Reddit user has a great credit score, he should seriously consider a cashback card.
- Cashback cards offer flexibility because the rewards can be used as a statement credit or deposited directly into a bank or brokerage account.
- There’s no need to worry about optimizing points for travel or merchandise, as cashback is straightforward—just earn money back from your purchases.
- He could also enjoy a new cardholder bonus after meeting the spending requirements, offering him extra rewards right away.
Using a cashback credit card means starting with immediate financial benefits, and as long as he pays off the balance each month, he’ll avoid interest charges while gaining the rewards.
For anyone with a solid credit score and responsible spending habits, switching from debit cards to cashback credit cards can significantly improve financial outcomes.
- It’s easy to see how credit cards can help users earn rewards with minimal effort.
- If you can pay off the balance every month, cashback cards provide benefits like financial protection, improved credit scores, and direct rewards for everyday purchases.
