I’m sure Dave Ramsey will kill me for this but I LOVE credit cards. They make the purchasing process so much easier. There are two main advantages that credits cards have over debit cards.
1. Security- Credit card fraud and identity theft have become almost common in recent years. It has become imperative to protect our information and credit cards help us do that. If someone was to steal your credit card info and went and spent $1,000,000 on it, how much would you be liable for? Absolutely $0. You would call the credit card company and tell them what happened and the charges would be dropped from your account almost immediately. With a debit card on the other hand, if someone completely drained your bank account, it would take months to get it recovered. Leaving you without money when you would need it the most.
2. Credit Card rewards- With some cards offering 3% cash back, you are giving up free money by not using one. Not to mention all the signing bonuses and travel points that are also available with some cards. Some people go on elaborate trips all financed through their credit card reward points. Most of the time, these travel reward points will pay for your flight, hotel, and rental car. Bottom line: Free money.
Conclusion: I don’t want to totally discount Dave Ramsey’s fear of credit cards. Many people have a hard time controlling themselves with credit cards and are better off with just a debit card. Credit cards are only better when you are spending on things that you actually need and you always pay off your entire credit card balance every month. If you have the self-discipline to do those two things then it allows you to fully utilize of the perks of credit cards.