I hope I don't sound too uneducated here. I've just started learning more about personal finance recently. But why do people apply for credit cards when debit cards are so convenient?

I'd just share a simple example and you'd get it. Check this credit card out: https://seedly.sg/reviews/credit-cards/citi-pre...

Just by signing up (must be through the link in that url) and spending $200, you get $350 cash. You don't get deals like this for debit cards!

Welcome to the world of credit cards!

Hi Anon,

I think this is an extremely common point of confusion! Debit cards are definitely convenient, but credit cards are superior for many reasons:

• better spending rewards

• exclusive card benefits

• build credit score

• higher interest rate for savings accounts

• optimise cashflow

• fraud protection

Of course, credit cards only become a benefit for people who can control their spending - otherwise, it becomes harmful to the user instead with atrocious interest charges.

You can also check out this post for more details about why I think people should use credit cards.

Hope this helps!

Regards,

thefrugalstudent