Beginner's Guide: Why we gave up using debit cards for credit cards

In today's world, credit and debit cards have become ubiquitous, and there are more options than ever before. However, instead of using regular credit and debit cards, my family and I switched to using credit cards with travel rewards attached. This has allowed us to maximize points and miles with various hotel and airline companies, and we couldn't be happier with the results.

Co-branded credit cards partnered with hotels and airlines now offer sign-up bonuses that can provide thousands of points or miles, which is an excellent starting point for building up an account. These cards also offer other perks and advantages, such as elevated status or free baggage on flights, which can be incredibly beneficial if you travel with family or plan to travel with them in the future.

Most sign-up bonuses require an initial spending amount over a couple of months, but with a little strategy, this can be accomplished easily and painlessly. It's best to target the card(s) you'd like to acquire and check out the spend requirement for the bonus. We recommend doing your best to save that amount and then paying off any or all charges made to meet the requirement so that you can avoid any finance charges or fees.

Many of our everyday bills, such as power, gas, and cell phone bills, can be charged on a credit card. Once you add in groceries, restaurants, and gas, you'll find that this can be easily accomplished. However, it's best to sit down and do a budget of your expenses first to know just how much you spend and what else you'll need to do in case there is a shortfall for the minimum requirement.

It's crucial to never overspend or put yourself in unnecessary debt just to get points or miles. We recommend knowing your budget and saving the minimum spending requirement beforehand. If you can pay your balance off every month, you will get the full advantage of any rewards card and avoid finance charges that take away from the purpose of gaining points or miles. This is key to free travel, and it's essential to remember.

Being responsible and paying off your balance every month will also help you build a solid credit history and improve your credit score in the future. Once you become more seasoned, you'll be able to truly maximize those dollars into points or miles. We use our cards for a lot of our spending, but we try to maximize the usage of each one with the extra points you might get on various categories like gas or groceries, for instance.

The average monthly expenses for American households are $5,111, according to the most recent Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics (BLS). Transportation is $819 a month of that $5,111 alone. Those expenses can add up to a good amount of points if done meticulously and correctly. For example, if there is no gas reward bonus on one particular card, we don't use it for gas. If there is a reward bonus for buying groceries on a particular card, we use that card for groceries.

It's important to make decisions about what brands you'll want to be loyal to so that you can maximize your points and not spread yourself too thin, especially when starting off. Other advantages of credit cards include the obvious security and flexibility they provide. Most credit cards offer purchase protection from fraudulent usage, which is not available with debit cards. You can also avoid international fees with most credit cards, especially travel rewards cards.

Using credit cards does come with a set of responsibilities and disadvantages, so it's essential to weigh the pros and cons before deciding which type of card is right for you. However, if used responsibly, travel rewards credit cards can be a fantastic way to earn free travel and enhance your overall travel experience.