3 Reasons I Almost Never Use My Debit Card

I remember going to the bank with my parents one day during high school to open my very own checking account. I was a little overwhelmed by the responsibility of carrying a debit card around in my wallet. Here was the key to my own little vault, slim as a playing card. I felt very mature.

Fast forward a few years to when I opened my first credit card, and I had that same feeling all over again. A little nervous and a little in awe that I had the power to access all that money whenever I wanted.

As the years have gone on, my debit card has taken a backseat; in fact, it's gotten a little dusty at this point because I hardly ever use it. Here are a few of the reasons why.

1. I like earning rewards with my credit cards

One benefit of a debit card over a credit card is that with the former, you can only spend the money you actually have. If you're on a tight budget or prone to overspending, using a debit card can help you stay in line.

But if you consistently keep your spending in check and know you'll be able to pay off any charges each payment period, using credit cards can be a boon to your finances. Many credit cards earn rewards, either in the form of cash back, points, or travel miles. This essentially makes everything you buy a little bit cheaper because you're getting paid back a percentage of each purchase in one form or another.

Debit cards just can't compete with that.

2. I feel safer with the protection from credit cards

Another benefit that credit cards offer is fraud protection. If you lose your wallet or your card information gets stolen, you can breathe a little easier knowing that you won't be on the hook for all, or potentially any, of the fraudulent charges that might occur. The Fair Credit Billing Act limits your liability to $50 as a result of credit card fraud. And some of the best credit cards even have 0% liability.

If you drop your debit card on the street and some scoundrel goes on a shopping spree with it, you could be out a lot more. Depending on when you report the card as lost or stolen, you could be responsible for all of the money taken from your account.

3. I almost never pay with cash

Once I started using my credit cards regularly, I never went back to using my debit card to pay for purchases. That meant the only time I was using it was to take out cash. But these days, my ATM visits are few and far between.

According to the Federal Reserve, cash usage dropped to 16% of transactions in the U.S. in 2023. That drop is likely in part due to the COVID-19 pandemic, when we were all worried about any sort of contact and avoided exchanging bills and coins with strangers. Touchless card readers and paying with smart devices became more common, and it looks like I'm not alone in making that switch.

More benefits for my finances

There are plenty more perks to using credit cards, from purchase protection to credit building, that debit cards simply don't offer. While I'm glad I got my financial footing under me with a debit card, I've mostly moved on to greener pastures.