Since I started into “The Points Game”, I can honestly say I don’t know the last time I have used my debit card for a purchase. Buying a pack of gum… American Express Gold, ordering pizza online… American Express Gold, convincing my wife that I absolutely need the new Xbox Series X… American Express Platinum, and the list goes on and on. Using your debit card is darn near offensive to me, especially when you have so many options to put money or points back into your wallet to use later.
Why Don’t You Use A Debit Card?
Using a debit card is great for getting cash back when there isn’t an ATM around… that’s about it! Using a debit card provides you with no value, aside from allowing you to purchase the item. Using a credit card on the other hand often provides you with extended warranties, points, cash back, miles, etc., thus providing exponential value depending on your circumstances. I personally always look to find value in everything that I spend money on and using a good credit card allows me to find even more value then I normally would.
Let’s look at an example of something I purchased last year… a new television. I could have used cash, a debit card, my credit card, heck depending on when you are reading this Dogecoin may even be an option… however I chose my American Express Platinum, just like I do for any large purchase. Using my American Express Platinum, I am able to get an extended warranty on my item for free after the manufacturers warranty, something not offered by cash or debit cards. If my brand new television breaks at 7 months and I purchased it using my debit card, I have now lost the $300 I just spent, however using my credit card I am able to file a warranty claim and American Express will replace it for me free of charge! I have personally only had to use this warranty service once, but it was extremely easy.
How Much Can I Actually Earn By Switching To A Credit Card?
Mileage will vary, however let’s assume you are like the average US consumer and spend $60,000 a year across all spend:
$60,000 on a debit card = $0 cash back, $0 points
$60,000 on a credit card that earns 1 point per dollar spent = 60,000 points = $1,200
$60,000 on a credit card that earns 1% cash back = $600 cash back
Using the examples above, we can see that even if you chose the American Express Platinum or American Express Gold and didn’t hit any multiplier categories, you would earn $1,200 a year(based on a 2 cents per point valuation). If you decide to go the cash back route, you are still earning $600 cash back at an absolute minimum using the Chase Freedom Unlimited!
Do you still use a debit card for your purchases? Why haven’t you made the switch? Let me know in the comment section below!
The Points Authority: Mastering The Points Game 