A debit card should not be the go-to tool you use for making purchases. In my opinion, it is something you should only use when you need to make a cash withdrawal from your checking account.

To add to my opinion, you should have at least 2 to 3 credit cards if you are 21 years old. To dive into why you should always use a credit card over a debit card to assist you with better understanding my opinion, the following are three reasons:

1. Build Your Credit History

2. Earn Rewards

3. Increased Fraud Protection

1. Build Your Credit History

When you spend money on a credit card and pay off your full statement balance every month, you are building your credit history. Why is your credit history important? It is important because it puts you in a better position to qualify for that apartment, mortgage, auto loan, or premium credit card that you want.

As you may know, your FICO Score is used by 90% of top lenders to determine your creditworthiness. Your payment history makes up 35% of your FICO Score, so in using a credit card for all your purchases and responsibly paying your full statement balance every month, you will have a strong credit history sooner than later. Spending on your debit card does not build your credit history.

2. Earn Rewards

One of the best things about credit cards is the ability to earn rewards. Rewards include things such as cashback and travel points. Who does not want the opportunity to earn essentially free money from making purchases? In being a responsible user of credit, your credit card should make you money over time. The same cannot be said for a debit card.

3. Increased Fraud Protection

When making a purchase on a credit card, you are not immediately using your own hard-earned money. Instead, you are using a line of credit your credit card issuer has offered you. In the case of a fraudster getting your credit card information and using it to make purchases, you will be able to notify your credit card issuer regarding it and have the purchases investigated and removed without losing any of your own money.

If a fraudster gets your debit card information and uses it to make purchases, you will still be able to report it, but you will likely be faced with losing your own hard-earned money for some time as the investigation occurs.

The benefit of using a credit card for all your purchases outweighs using a debit card for your purchases. I have not used a debit card for any of my purchases since 2018. I have no reason to due to the rewards and benefits that my credit cards offer me. It is important always to be a responsible user of credit. In being a responsible user of credit, it will elevate you financially rather than deteriorate you.