I stopped using my debit card 3 years ago to put everything on my Chase Sapphire Reserve, and it's one of the best decisions I've made for my money

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I stopped using my debit card 3 years ago to put everything on my Chase Sapphire Reserve, and it's one of the best decisions I've made for my money

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Chase Sapphire Reserve

David Slotnick/Business Insider

I haven't routinely swiped a debit card in years, and I have my Chase Sapphire Reserve to blame - or thank, rather.

Back in 2016, I opened a Chase Sapphire Preferred card. In my race to score the 50,000-point sign up bonus, I put every purchase on my card to meet the $4,000 spending threshold within three months. (The card's now offering a 60,000-point sign-up bonus after you spend $4,000 in the first three months.) Then I just never stopped.

I'd previously been swiping my debit card at stores and restaurants, but now that I could use a rewards credit card to earn free money, there was no turning back. I still have a debit card because it's attached to my checking account, but I only use it whenever I need to take cash out, which is rare.

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Of course, I only spent on my credit card what I could afford to pay back on time and in full every month, and still do to this day. Otherwise I wouldn't be able to earn the rewards, my credit score would take a nosedive, and I'd be responsible for paying a balance that's accruing interest. In other words, I still treat it like a debit card in that I never spend more than I have in my bank account.

A few months ago, I upgraded from the Chase Sapphire Preferred to the Chase Sapphire Reserve and it's never been more clear that I made the right choice when I switched from debit to credit.

I can't earn comparable rewards on a debit card

Some upper-tier debit cards have solid rewards features, like cash back, but none are comparable to the Chase Sapphire Reserve, in my opinion.

While I do pay a steep $450-a-year fee for the Reserve, the 3x points on all travel and food purchases, $300 annual statement credit for travel, and up to a $100 credit to cover the application fee for Global Entry or TSA PreCheck make it well worth the sticker price. Had I continued buying everything with my debit card over the last several years, I would have missed out on over $1,000 in free travel.

I've built excellent credit along the way

A rewards credit card is only as beneficial as your financial discipline. Because I have good spending habits, I'm able to make the most of my credit card, including achieving and maintaining an excellent credit score.

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By putting hundreds of dollars' worth of purchases on my credit card every month and then promptly paying off the balance before the due date, I've built a very solid credit history. I also aim to keep my balance far below my credit limit, which contributes to a good credit utilization ratio.

Credit cards are safer than debit cards

My debit card is connected directly to my checking account, where I keep the cash I use to pay my credit-card bill at the end of the month as well as money I need to cover any other expenses. If a thief got ahold of my debit card - or even just my card number and PIN number - they could theoretically drain my bank account, and the process for reporting, investigating, and recovering my money could be onerous.

Credit cards offer much more in the way of fraud protection. Legally, credit card users are only liable for up to $50 worth of fraudulent transactions, but many issuers have a $0 liability policy. If there's ever a strange charge on my credit card, I can simply file a dispute online or over the phone and get it removed before my bill is due.

Click here to learn more about the Chase Sapphire Reserve »

Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

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Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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