If you’ve comfortably paid for all of your expenses with a debit card for most of your life, you might be hesitant to switch to a credit card. After all, you’ve heard countless horror stories about people falling into a ridiculous amount of credit card debt and struggling to pay it off for years, so why would you risk it?
In reality, using a credit card is a much smarter idea for the average person than paying for things with a debit card. Here are three reasons that will convince you to open a credit card account ASAP.
Credit Cards Are Safer
When a thief steals a debit card from a victim, they can quickly and easily empty the account before the poor person has even realized they’re missing their wallet. Online shopping with a debit card is especially dangerous; if someone obtains your card number, they can immediately withdraw funds from your account.
A credit card, on the other hand, is not directly tied to your money, which means that thieves have a harder time spending money quickly. If you realize that someone else has been illegally using your card without permission, you can contact the credit card company and cancel the transactions before they go through. This means you’re less likely to jeopardize your financial stability and lose money.
They Give You Rewards Points
Whether you’re looking for air miles or cash back, there’s a card out there calling your name. Credit card companies offer hundreds of different monetary incentives for using their services, so just by making your usual daily purchases, you can add to your cash flow or fund an expensive trip somewhere amazing. Using a debit card instead of a credit card with rewards is essentially throwing away the opportunity to score extra benefits.
You Can Build Your Credit Score
When it comes time to apply for a home loan, purchase auto insurance, or even sign a lease for an apartment, you’ll need to have a good credit score in order to obtain fair prices. By using a credit card regularly, and by making the necessary payments on it, you can quickly build a credit history that will benefit you for years to come.