Why Credit Cards Beat Debit Cards (And When You Might Still Need a Debit Card)

Entrepreneur Codie Sanchez has sparked debate among personal finance enthusiasts by challenging conventional wisdom about debit card usage. While many financial advisors have traditionally promoted debit cards as the safer option, Sanchez’s recent commentary on the “On Purpose With Jay Shetty” podcast presents a compelling counter-argument: credit cards are often the smarter financial tool.

The Fraud Protection Gap

One of the most glaring differences between these payment methods lies in fraud liability. When fraudsters target your debit card and make unauthorized charges, the burden falls on you. “If somebody steals your debit card and goes and charges things, the bank goes, ‘I don’t know, that’s your money. Don’t really care,’” Sanchez explained. In contrast, credit card fraud operates under entirely different protections. When unauthorized charges appear on a credit card, resolution is swift—typically requiring just a couple of clicks to dispute, with the issuer promptly reversing charges and mailing you a replacement card. This distinction matters significantly when considering when can i get a debit card versus relying primarily on credit.

Building Wealth Through Credit Score

Perhaps the most critical advantage credit cards offer is their role in establishing creditworthiness. Your credit score determines far more than just loan approvals—it influences interest rates, rental applications, employment prospects, and access to premium financial products. Sanchez emphasizes: “Good credit, in this country, is the underpinning of wealth.” Debit cards contribute nothing to this essential financial metric, meaning they rob users of a crucial wealth-building tool. Using a debit card exclusively leaves you unable to develop the credit history that unlocks better financial opportunities.

Rewards and Perks You Actually Use

Credit cards frequently offer cash back, points, and exclusive perks—none of which accompany debit card transactions. “They don’t give you any points or perks or cash back,” Sanchez noted. For disciplined users, these benefits translate into tangible savings on everyday purchases, travel, and entertainment. It’s essentially free money that debit card holders simply leave on the table.

The Critical Caveat: Responsible Usage

Sanchez acknowledges that credit cards aren’t universally beneficial. They become problematic when misused: carrying balances month-to-month, allowing interest to compound, or conflating “wants” with “needs.” The key distinction is intentionality—treating credit as a budgeting tool rather than an extension of income.

When considering when can i get a debit card for legitimate purposes, the answer is clear: use it as a secondary account for specific needs rather than your primary payment method. Reserve debit cards for ATM withdrawals or specific transactions where you want direct account access, but make credit cards your foundation for everyday spending when used responsibly.

The debate ultimately hinges on financial discipline. Credit cards offer superior protections, wealth-building potential, and rewards—but only when handled as strategic financial instruments rather than temptation devices.