I have a 720+ credit score but make all my purchases with a debit card and realize I’m missing out

Recently a Reddit user posted a thread asking for advice because he feels like he is missing out. The issue is that he has a credit score over 720, but he always makes his purchases with a debit card. He’s now realizing that’s not necessarily the best move for maximizing his money.

While he doesn’t travel often and isn’t concerned about travel rewards, he still wants to get the most bang for his buck and he’s now realizing that using a credit card may be the best way to do it. 

Why you’re missing out if you aren’t using a credit card

The Reddit user is in a great position because his credit score should qualify him to get just about any rewards card that he wants. He’s also correct that he is missing out. If you can qualify for a good rewards credit card — and make sure to pay the bill in full every single month before paying interest — there is no reason not to charge every purchase that you can.

When you charge purchases on a credit card that offers rewards, you get a percentage back of everything you buy. This makes your items cheaper and the rewards add up. If you charge just $1,000 per month of stuff on a card offering 2% back, this can add up to $240 per year in free money you get — just for making purchases that you were always going to make no matter what.

There are also other advantages as well. For one thing, you can use your credit card responsibly to improve your credit even more. While a 720 score is a good score, this Reddit user still has room to improve, and doing so could help make other borrowing — like mortgages and car loans — even cheaper.

Plus, credit cards offer a lot more borrower protection than debit cards. Depending on the card, the Redditor could enjoy features like free return protection, extended manufacturer warranties, and more. He can also dispute charges and get help from his credit card company in the event that a merchant doesn’t perform as promised. 

As long as you don’t have any reason to expect you’ll find yourself deeply in debt because cards will cause your spending to get out of control, why would you want to pass up these perks?

Why a cashback card could be the ideal option

Since the Reddit user has a good credit score, he should have his pick of cards. He should seriously consider choosing one offering cash back.

Cashback cards provide tons of flexibility in what you can do with rewards. You don’t have to redeem them for trips or for merchandise that you may not need — especially since the Redditor said he doesn’t travel. He can opt to get a statement credit that directly reduces the cost of purchases, or many cards also allow you to have your cash back deposited in your bank account or brokerage account.

With a cashback card, there’s also no worrying about optimizing rewards or trying to make the most of points. You just get money back, and you know exactly how much upfront. You can often find a card that gives you a new cardmember bonus too, if you meet spending requirements, so the Redditor may get some free cash to start.

The poster can check out some awesome cashback cards to find the right one for him today, and then he can apply and start spending money to begin reaping the benefits of his new card. As long as he pays off the bill in full, he’ll be in great shape. 

The post I have a 720+ credit score but make all my purchases with a debit card and realize I’m missing out appeared first on 24/7 Wall St..