Today I was told that certain banks are now offering reward points that are very similar to a credit card where you can earn points for every X amount of dollar that you spend with your card. I was thinking about it on whether or not it would make me use my debit card more than my credit card and in almost every way I can think of it would be better to just use the credit card if I had a choice between the two. Just for the record, the reward points people would be getting are literally attached to the same company in regards to where and how to redeem your points.
With most banks people usually have an X amount of transactions in a plan before you start getting charged for it. That alone makes using the credit card a better option for myself while at the same time you can help to build things like your credit history by being responsible with it. There are really only two times when I use a debit card personally. One would be that the place does not take a credit and I wouldn’t want to carry around so much money. The second time is that companies that provide credit card payment options have to pay business transaction fees and for a lot of smaller business people that I know I usually use a debit payment to help save them money.
So overall, it doesn’t really do anything for me in terms of encouraging me to change my habits. I guess this does give people another reason to not use plain cash whenever possible though.
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