Since I've been thinking about credit cards lately, and thinking about potentially not using my credit cards to help with rebuilding the credit score, a couple of things came to mind.
- If I stopped using a credit card, I stop getting cash back bonuses.
- If someone swiped my debit card digits, and there was fraud committed against me, that money would instantly be drained from my checking account.
Those are two reasons why I will continue to use credit cards, with the second reason being a MAJOR reason. I don't get a ton of money from cash back bonuses, but 1% cash back is cool and numerically, it's higher than a 0% cash back bonus.
As for the second reason, I have a quick story to tell. Some time ago, I walked downstairs at my house and found my mother crying at the computer. She was on the phone while looking at our computer. I didn't know what my mother was crying about, but I was instantly worried and confused. She was on the phone with the credit company because she was looking at her bank account and ~$800 had been charged to her credit cards from purchases that she didn't make. After looking at the transactions, it was for T-Mobile service all the way down in Georgia. For one, we use Verizon, and two, we've never ever been to Georgia.
The charges got taken off, but I was very angry for what had happened because it made my mother cry. If the fraud happens on a debit card, that money will be deducted from your checking account. If the fraud happens on a credit card, at least there is a barrier in place before the money gets deducted from your checking account.
So for now, I will continue using my credit cards.