Debit or Credit?

[firehawk73]

I use my PNC debit card 95% of the time when i'm out paying for things. I will only use my CC for a few things every month to show usage and pay it off immediately. I have 2 other cards that i am working on paying off so i can put them away and get to AZEO. Would it benefit me to move more of my usage to my main CC to build a better history (but still pay it off completely every month) or just continue what i'm doing?

[dragontears]

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@firehawk73 wrote:

I use my PNC debit card 95% of the time when i'm out paying for things. I will only use my CC for a few things every month to show usage and pay it off immediately. I have 2 other cards that i am working on paying off so i can put them away and get to AZEO. Would it benefit me to move more of my usage to my main CC to build a better history (but still pay it off completely every month) or just continue what i'm doing?

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You should do what works best for you. While you are in "debt payoff" mode if using your debit card works best, then do it.

The concept of a "relationship" with a bank is one sided, banks don't care about individuals, they care about their bottom line and I suggest that you treat them the same way (only use them when it benefits you otherwise don't care)

[Girlzilla88]

@firehawk73               I actually avoid DEBIT at all if possible but really only use it for specific bills to be withdrawn otherwise I don't keep more than 20/50 dollars in my CHECKING (savings are different) and there are a few reasons to that but mostly because a lot of Credit Cards have Fraud/Identity protection so you can have a better chance of blocking/locking and seeing your funds back when sometimes if something were to happen with a Checking (it can take longer) or if they feel you didn't take certain extra precautions some will hold you as the at fault or some places also allow X amount to go OVER in the negative so you want to be mindful of that as well so if someone did get a hold of your Debit information they are more likely to succeed with getting more money out etc (You can also set up on a lot of cards alerts and if you go over X amount to notify you or NOT to go over X amount period).     I feel like the protection (and this is just my opinion) is a lot better/reliable on Credit Cards than on my Debit.

[Girlzilla88]

@firehawk73       But to answer your question on which is better if you want to build/grow your cards it's always good to have a good relationship with them.    If down the line you ask for CLI or another card etc it will help you out and if you plan on paying it off in a months time you may even be able to put them on a point/reward card and earn while you pay your normal bills too     Another perk of Credit Card vs. Debit.         But just food for thought really.

[Anonymous]

The added protection of credit is definitely advantage. But I would be using my credit card to earn rewards and paying it off monthly that way you put money in your pocket.

[Anonymous]

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@firehawk73 wrote:

I use my PNC debit card 95% of the time when i'm out paying for things. I will only use my CC for a few things every month to show usage and pay it off immediately. I have 2 other cards that i am working on paying off so i can put them away and get to AZEO. Would it benefit me to move more of my usage to my main CC to build a better history (but still pay it off completely every month) or just continue what i'm doing?

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If you asked me this 7+ years ago, I'd give you a totally different answer compared to today because although both methods were fine in regards to building my credit history, my priorities changed.

7+ years ago, I got into the habit of keeping $1,000 in my PayPal account and using the PayPal debit Mastercard for all credit card purchases for my family which also yielded 1.5% cashback.  In the many years I used that method, we probably had 2 instances where our debit card info got stolen somehow and some small charges occurred in Canada (I'm from the US, never visited Canada) to which I contacted PayPal and they took care of it and gave back the money within a few days.  This account was separate from my primary checking account at my local bank at the time and my exposure was only $1,000 at most.  I used the PayPal debit Mastercard over my local bank's debit Mastercard solely for the 1.5% cashback bonus.

Then, 6 years ago, our family became debt free and our priorities changed.  Now, the focus was taking full advantage of the best that credit cards have to offer and maximizing cashback rewards.  I started lurking on various forums, including myFICO, and learned about credit cards that I never knew existed.  Cards like US Bank Cash+ that gives me 5% cashback on monthly bills such as our Comcast/Xfinity bill, T-Mobile, and Netflix.  We use the PPMC as our daily driver that gives 2% cashback on all purchases.  I put a HUGE focus on security due to past experience with fraudalent chages and got the Apple Card.  I love ApplePay for the 2% cashback (3% towards Apple products/services & their partners).  I love the Apple Card since it doesn't show any sensitive information such as the card # (I use the Apple Card every time the credit card leaves my sight, such as a restaurant, because I hate dealing with fraudalent charges and wondering where it happened).  Needless to say, I've never had a fraudalent charge since then, and because of all the 5%, 3%, and 2% CB cards we have, we've been saving a TON of money compared to before.

Our credit history was always good due to good habits and practices, but what really changed was the amount of cashback rewards we're getting now compared to before and a lot less exposure to risk/inconveniences.