I’m a Self-Made Millionaire: 3 Reasons I Only Use Credit Cards
Written by
Adam Palasciano
Edited by
Cory Dudak
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Credit cards allow for flexibility when it comes to spending. It’s easy to get yourself stuck in debt with irresponsible credit card use. In fact, LendingTree reported that Americans were collectively stuck in $1.129 trillion of credit card debt at the start of 2024.
However, if credit cards are used responsibly, they carry a ton of benefits.
Tori Dunlap, financial guru, podcast host, author of the New York Times bestseller “Financial Feminist” and responsible credit card user, saved her first $100,000 by age 25, according to CNBC. At that point, she quit her corporate job and started Her First $100K. Today, it’s a multi-million dollar business helping women gain control of their financial lives.
On top of all that, Dunlap is a strong advocate of credit cards and explained several key benefits of credit card use.
3 Reasons To Only Use Credit Cards
Below, you’ll learn the ways Dunlap only uses credit cards to her financial benefit (and why she leaves her debit card in a drawer):
- Using Credit Cards Protects Against Fraudulent Charges: Dunlap highlighted that most credit cards come with fraud protection for unauthorized purchases on your account. Federal law states cardholders are only responsible for up to $50 worth of unauthorized charges made on their credit card if they report it as lost or stolen. However, if a thief gets a hold of your debit card and ATM PIN and empties your checking account, it’s going to be much more difficult to recoup your funds (if at all).
- Earning Rewards: Many credit cards offer reward points and miles for everyday purchases. Benefits can vary from card to card, however, it’s possible to use credit card rewards to fully pay for luxury experiences such as business-class seats on your next flight or a stay at an expensive hotel — like Dunlap has been able to do.
- Boosting Credit Score: Dunlap makes sure to consistently use her credit card and pay her bills on time, two of the most important factors that determine your credit score. Making on-time payments is one of the biggest factors affecting your credit score (35% of it). Meanwhile, 30% of your score is determined by how much of your available credit you’re using. Therefore, keeping your balances low is also an important factor. To add, be sure to pay your credit card balance in full each month to avoid exorbitant interest charges on accrued debt.
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