There is one huge advantage to credit cards no one has mentioned. Security! If your bank / debit card is stolen you can be drained and the bank may or may not help you or make you whole. Credit card companies offer better protection. I use a rewards CC for most everything and pay it off each month. I use it when I travel for work too.
If you are familiar with the Catch Me if You Can movie and Mr. Abignail, he is now a federal consultant on fraud and identity theft. He says use a CC for everything.
Credit cards offer better protection because they're required to :) I mean, it doesn't make it any less of a good idea, but the card companies aren't looking out for YOU.
Keith Tanner said:
Credit cards offer better protection because they're required to :) I mean, it doesn't make it any less of a good idea, but the card companies aren't looking out for YOU.
I agree, but leveraging that for your own safety is a good idea. I also keep my credit frozen so no one can open accounts even if they get my info. I can verify this works very well.
My debit card has a rewards program. I typically get a few hundred in gift cards back every year.
MasterCard and Visa have exactly the same protection on debit and credit cards. Go to their sites and look for yourself.
Mastercard Debit
Visa Debit Card
But, but, but the thieves will drain my account!!! Everyone needs a separate, de-coupled from the primary checking account, emergency fund whether using credit or debit cards. This prevents your funds from being completely decimated in an identity theft situation. You think they need your debit card number to get your money, seriously? Data breach anyone? Bueller... Bueller? More importantly in this crowd, having a separate, dedicated account prevents you from accidentally buying a project car, bass boat, guitar, or your hobby of choice with the emergency fund.
Full disclosure, I have not used a personal credit card in over 5 years. This includes international travel. It's pretty easy to not run a balance on something you don't have.
Also, ditch the mega banks and find a local credit union with actual human beings to help you.
The Costco credit card does rewards based on transactions, not statements. And if your annual reward is large enough, they will direct deposit it into your account of choice. Last year our rewards were over $1000. And the year before we a 5 year old Mazda 6 on the credit card.
In reply to Johnboyjjb :
Amex is based on transaction, not statement. Are there really ones based on if it makes it to the statement?
