during the holiday season have you seen
those debit card infomercials they
basically demonize credit cards and say
how dangerous that is if you use your
credit card it's like oh no right it's
such a bad thing well I believe only
idiots use debit cards here are five
reasons why I believe credit cards are
much better reason number one why you
want to use a credit card and that is
you can leverage other people's money
you see there's a saying that cash is
King in business you can survive a long
time without making a profit but you
will not survive a day without cash
companies go out of business because
they run out of cash when you use credit
card you're essentially borrowing money
from the credit card company so when you
use your debit card the minute you use
that card that money is gone from your
bank account but when you use your
credit card assuming you're paying off
the balance every single month you're
leveraging the credit card company's
money it is a smart thing to do because
their period of time a lot of people a
lot of entrepreneurs even when they were
getting started guess what they started
off borrowing money from their credit
cards to make their first initial
investment to get the business going to
get the investment going off sometimes
to just help them get over that period
of time I did that quite a few times so
that's reason number one why you should
use a credit card reason number two to
use your credit card is you can borrow
money for free as long as you're paying
off the balance every single month a lot
of people deserve fatal credit cards
because they're thinking oh my God I'm
gonna it's gonna pay interest I'm gonna
get into credit card debt well it has
nothing to do with the credit card is to
do with how you manage your money and if
you have any self-discipline it is just
like a pencil right you can use a pencil
to write beautiful poem you can use the
pencil to write a song you can use the
pencil to stab someone like John Wick
right kill three men with one pencil you
could do that too it's how you use it if
you have the self-discipline to pay off
their credit card every single month
there's nothing to worry about and if
you are worried about it and sometimes
you're afraid that oh oh my goodness I
might forget set a date put it in your
calendar put it on your iPhone so you
know you're paying off the balance every
single month don't worry about it let's
say even for example you are somewhere
and you're traveling you need your car
towed and maybe you don't have that
money right now before the next paycheck
what do you do you're in the middle of
nowhere right and you don't have enough
money in your bank account to use your
debit card well this is a moment that
you could use your credit card take care
of that get the car towed then you've
got a few weeks to solve the problem
wait till the next paycheck comes and
boom now you can pay that off as long as
you paid it off and not just making the
minimum payment you are okay reason
number three to use your credit card is
you build up your credit score one of
the most important things that most
people Overlook and they don't think
about is your credit score I actually
did an interview with Matthew pillmore a
while ago you can watch that video on
how to build your perfect credit score
you can check that out now why is this
important because when you are now
having a family when you want to buy
that home when you want to get that
mortgage the bank will look at your
credit score that's your credibility
write a decimal borrowing power you need
to build that up at a young age you need
to build up your credit score and having
a credit card if you pay that off again
on time and not late you build up your
credit score so a credit card and
multiple credit cards use wisely could
build up your credit score a debit card
cannot do that a debit card cannot do
that if you are a business person if
you're thinking of raising Capital
borrowing money from the bank get a car
all of that the banks will look at your
credit score it is how we live right
this is how we build credibility in
North America it's very very critical
that you do that and it's better to do
that when you're starting at a young age
building up that track record does that
make sense reason four why you should
use your credit card is you get rewarded
now there are many forms of credit cards
there's so many different credit cards
out there options some of them they
offer cash back meaning for x amount
dollar to spend they give you a tiny bit
of cash back you're getting paid extra
to use your credit card now why do the
credit card companies do that because
they want to encourage you to use the
credit card now they're counting on you
to actually just make the minimum
payment and rack up the interest rate
but if you are a fan of mine you are
smart harder than that I believe you
have the self-discipline now there are
also other credit cards that offer you
reward points or Travel Reward Points
right those are very very good because
let's say with my company I have
multiple multiple credit cards within a
company and some of them are travel
cards so we accumulate a lot of a lot of
those points that Jenny and I my wife we
could utilize when we are traveling when
we are staying in hotel when we are
using it to buy a flight ticket when we
are using it to buy even a computer
I will not get any of that if I'm just
using a debit card especially if we have
any kind of volume example if I use my
AmEx then I could go to the airport
lounge to enjoy free access there are a
lot of perks debit card doesn't offer
that reason number five why you should
use your credit card is you are better
protected now this just recently
happened to me that I got a call from my
credit card company from the fraud
prevention department saying that
someone has been using my credit card in
another country illegally so what they
did is they immediately stopped the
credit card and they issued me a new one
and then through a process they also
give me my money back stop that
fraudulent activity now that's fraud
prevention a lot of other credit cards
they also come with insurance
protections that when you're traveling
depends on what card you use you get
extra protections for that as well if
you're using Amex which I love Amex
their Amex also comes with a lot of
perks with the debit card you don't get
that if someone stole your debit card
and assuming they know your PIN number
when they took money out of your bank
account that money is gone
it is gone forever
but with a credit card you can then
contact the credit card company you can
provide evidence and say hey you know
what these are charges were not done by
me it was done by a criminal and they
would investigate and if you prove your
case and they would say okay no problem
you have your money back and then you
have a new card that's pretty powerful
so those are the five reasons why I
believe only idiots use debit cards and
why credit card makes sense comment
below let me know which reason resonates
with you and do you use your credit card
wisely not getting into debt but use
your credit card wisely