This week, we are switching from only using our debit cards to only using a credit card. Some of you may think we’re crazy and that we’ll wind up in debt.
My husband and I have always been debit users. Don’t spend what you don’t have, right? We would use our credit cards for booking hotel rooms and other large expenses, or if we didn’t have money in our checking account. We paid them off every month, but we viewed the credit cards as “for emergency and big expenses only.”
So, when my husband brought up using credit cards for every single purchase, I’d be lying if I said I didn’t freak out a little. He mentioned the idea to me a few months ago, and I’m finally ready to make the switch. Here are three reasons why I agreed to only use a credit card from here on out.
Why We’re Switching from Debit to Credit for Everyday Purchases
To Earn Cash Back
This is the main reason we are switching from debit to credit – cash back. We are getting the BankAmericard Cash Rewards Credit Card. Just for signing up, you get $100 cash back if you spend $500 in the first 90 days. For expenses, you get 3 percent cash back on gas (which we spend a lot on), 2 percent back at grocery stores, and 1 percent back on everything else.
To Simplify
Right now, we are kind of a mess with our banks and cards. We both bank at Bank of America (joined account), I have a Chase checking and savings, we have an online savings account, John has a credit card through Capital One, and I have a credit card through Chase. With one card that we use for everything, our lives will be simplified.
To Monitor Expenses
We use Mint right now to track our expenses, and while that’s great, there are so many categories and it takes a few days to update. If we only have one credit card that we’re making purchases with, it’ll be super easy to track and monitor our daily, weekly and monthly spending.
How We’ll Make it Work Without Getting in Debt
The fear of overspending on the card is why I’ve waited so long to make the switch. I’ve overspent on credit cards in the past, and certainly didn’t want to make a habit of it and wind up in trouble. The way we’re getting around this is simple – we are paying the credit card off daily.
So, in other words, if we can’t pay it our purchases off that day, we aren’t buying them. It’ll basically be the same as using our debit cards, except we’ll be earning cash back on every single purchase.
Keeping today’s post short and sweet, as I’m preparing for my very first book launch tomorrow! You can pre-order it today or just wait until tomorrow to make the purchase, if you’re interested. I’m also in the process of launching a brand new blog that will be my new brand and business. I’ll still be blogging here, too, but this new blog completely encompasses who I am. I can’t wait to share more details with you! (For those that buy my book, my new domain is in there. For those that don’t purchase my book, I’ll be sharing my new site within a month!)
Do you use a debit card or a credit card for everyday purchases? Why or why not?!
Holly@ClubThrifty says
atWe use credit for all of our everyday purchases, too. We do it for the purchase protection and because it’s a lot more convenient that way. The opportunity to overspend is lessened for us because I check and pay off our cards weekly to make sure we’re on track with our budget.
Shirria @ GDTH says
atWe use a debit card at the moment for all of our purchases because we are trying to pay off the credit cards. Now that I’m much more credit card educated and responsible, I’d like for us to switch over to using our WF credit card for everyday purchases because a percentage is applied to our mortgage principal. Once we begin doing this, however I will be sure to monitor and pay regularly to avoid over spending as well.
Kristin says
atSmart!! I finally got all my cards in order last month and am down to 1 debit card, a PayPal card for business, and then a couple CC’s. I have started switching everything to credit to earn the rewards. I held off for so long because I wanted to make sure I trusted myself haha, but I find that I’m more careful of my purchases when using credit, maybe because I know I have to pay it off each month. I’m all about those rewards and cash back đŸ™‚
Harmony @ creatingmykaleidoscope says
atCongrats on the new book – very exciting!
We use one credit card for our regular purchases, despite our debt, to earn rewards. The way we’re staying out of trouble this time is by not buying anything but the TRUE essentials. We’re making progress because we’ve completely changed our attitudes about spending.
Heather @ Simply Save says
atIf you can pay your balance in full every month, this is not a bad idea! I earn about $200 in Amazon gift cards each year from my credit card reward points. The gift card is for a larger amount than the cash back would be for my bank and an Amazon gift card is basically the same as cash to me.
Jayleen says
atOur credit cards have gotten a little, or a lot, out of control so we are back to the cash system for now. I do enjoy the rewards credit cards give when we are able to pay it off each month! It sounds like you have a great system for keeping credit cards in check!
Erin @ Journey to Saving says
atI’ve never been a huge fan of using my debit card. I always wanted to use credit to establish history. I got my first card at 18 and thankfully, I knew what NOT to do from my parents, so I knew I wouldn’t end up in debt. I treat my credit card like a debit card. I love getting cash back and how it makes tracking expenses easy.
Congrats on the book!
Jess @ Best Credit Cards Canada says
atI think this is a great idea. My husband and I also use our credit card exclusively for the same reasons (points and easy tracking). I have never had an issue with using a credit card and paying it off, but if you have in the past, I think it is brilliant to pay it off daily. You get the great benefits of credit and don’t have to worry about digging a hole. Love it.