Why I Refuse to Use a Debit Card
Let’s be honest—credit cards get a bad rap. And for good reason. When used irresponsibly, they can bury you in debt with sky-high interest rates. But when you understand how to use them strategically, credit cards can be powerful financial tools—for both your personal life and your business.
Here’s how I’ve learned to use credit cards to maximize rewards, protect my money, and grow my wealth, all while avoiding the common traps that leave so many people financially stuck.
Why I Use Credit Cards Instead of Debit Cards
Credit cards come with four major advantages that debit cards just can’t compete with:
- Cashback rewards—I earn 1.5% to 2% back on purchases I’d make anyway.
- Free travel perks—From airline flights to hotel upgrades, the perks are real if you use them wisely.
- Airport lounge access—It’s a small luxury that makes travel so much smoother.
- Security—If a fraudster gets your debit card, that money vanishes straight from your bank. With credit cards, the damage is contained—and often, completely reversed.
I’ve had personal experiences with both. I once lost $33,500 due to fraud tied to a debit card. That wouldn’t have happened with a credit card. And losing a wallet full of cash? That’s just gone. Credit cards protect your money far better.
My Two Non-Negotiable Credit Card Rules
I follow two strict rules when it comes to credit cards:
- Never spend more for the perks.
- Never carry a balance.
I treat credit cards like a tool, not a license to buy more stuff. Perks are just that—perks, not excuses to spend more than I normally would. And I pay off my balance every single month. Interest rates can range from 18% to 35%, and carrying a balance will erase any benefit those perks might offer.
Using Credit Card Rewards Strategically
Most people blow their cashback or travel points on luxuries. I take a different approach. I reinvest my rewards—even small amounts—into assets like ETFs or dividend-paying stocks. That way, my perks help grow wealth, not inflate my lifestyle.
For business, I use credit cards to categorize expenses, simplify taxes, and earn serious rewards on high-ticket costs like advertising and software subscriptions. Business expenses are usually higher than personal ones, which makes reward accumulation even faster.
Why Credit Cards Are Dangerous—If You Don’t Know What You’re Doing
Here’s the truth: a credit card is like a chainsaw. It can build something great—or do serious damage—depending on how you use it. If you overspend, chase points, or carry a balance, you’re playing with fire.
The moment you use a card to buy something you can’t afford, you’ve lost the game. Credit card debt is one of the most expensive types of debt out there, and it kills your ability to invest.
Building Wealth Starts with Education
Credit card strategy is just one part of financial success. If you’re serious about building wealth, you need to understand how to prioritize assets over liabilities, create passive income, and manage money like an investor.
I’ve spent years learning and teaching these principles, and it’s why I recommend financial tools that actually help, like the Finance Plus credit card guide. They’ve got some of the top recommendations for cashback, travel rewards, and business cards, tailored to your needs.
And if you want to stay ahead of the curve, I highly recommend subscribing to Market Briefs—a free daily newsletter that breaks down the stock market, housing trends, crypto updates, and economic shifts in a quick, digestible format. Plus, they throw in a free investing masterclass, which is great whether you’re just starting or looking to fine-tune your strategy.
Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.
