Money Management

[[{“value”:”Image source: Getty Images
Debit cards deserve a place in everyone’s wallet. They allow easy access to cash, help you stick to a budget, and can even help you avoid some unnecessary fees. But they’re far from the answer for everything.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. First off, credit cards offer stronger protections than debit cards. Think of your debit card as the key to your bank account. If someone gets their hands on that key, they can open the door, take a bunch of your cash, and disappear. And if you don’t report your missing cash fast enough, you could be on the hook for all of it, according to the Federal Trade Commission.However, the FTC says if your credit card number is stolen, you’re not responsible for any of the charges on your card. And if your physical credit card is stolen, the most you can be on the hook for is $50.For security reasons and more, here are five situations where you never want to reach for your debit card.1. When booking travelThis is where many credit cards are designed to shine. Credit cards routinely offer perks like:Travel insuranceRental car insuranceBonus points for booking travelHotel and flight upgradesThe list goes on. And if your travels are taking you abroad, many travel rewards cards waive foreign transaction fees and still provide your normal protections while out of the country. Check the perks your travel card has or check out our list of best travel cards to get in the game.Ready to upgrade your travel credit card game? Check out the travel cards our experts recommend to maximize your rewards.2. When online shoppingBy now we’ve all heard a horror story about online shopping. Your buddy thought the website was a little sketchy, but went ahead with the purchase anyway, because the deal was just too good to pass up. The next day he checks his bank account to see that $500 was spent at a Walmart six states away.If you act fast enough, your debit card can offer you protections. Or you can sleep well at night by using your credit card at checkout, giving you peace of mind that you’re protected.3. When making large purchasesWhile it’s a good idea for us all to spend within our means, sometimes we have to make big purchases. Whether it’s a new mattress, TV, or refrigerator, you might want to keep your debit card holstered for these types of purchases.If your credit card is new, it might offer an intro period of 0% interest that will allow you to pay off your big expense without penalty. But major credit cards also tend to have:Purchase protection: If your package gets stolen or your item arrives damaged, this perk usually has you covered.Extended warranties: Some major credit cards extend manufacturer warranties, which can save you from costly repairs.4. When building creditBuilding credit is necessary, but can be tough to accomplish. Luckily, secured credit cards, student credit cards, and entry-level credit cards can help — debit cards don’t build credit. Your credit score is important, and maintaining healthy credit habits keeps your score high.Use your credit card for small purchases or have a dedicated weekly or monthly expense on your card. Be sure to make regular on-time payments, paying your balance in full each time. This builds a positive credit history and keeps your credit utilization low — two keys to maintaining a high credit score.5. When rewards are at stakeThe rewards are one of the main reasons people use credit cards at all — so be sure you’re taking advantage of them! Credit cards routinely offer additional perks and cash back on different categories of purchases like:Dining outGrocery shoppingGasTravelAnd more!Never spend more than you can afford to pay off each billing cycle, but review your card’s terms and make sure you’re using the right card each time to maximize your benefits. Don’t leave rewards on the table by using a debit card.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Debit cards deserve a place in everyone’s wallet. They allow easy access to cash, help you stick to a budget, and can even help you avoid some unnecessary fees. But they’re far from the answer for everything.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

First off, credit cards offer stronger protections than debit cards. Think of your debit card as the key to your bank account. If someone gets their hands on that key, they can open the door, take a bunch of your cash, and disappear. And if you don’t report your missing cash fast enough, you could be on the hook for all of it, according to the Federal Trade Commission.

However, the FTC says if your credit card number is stolen, you’re not responsible for any of the charges on your card. And if your physical credit card is stolen, the most you can be on the hook for is $50.

For security reasons and more, here are five situations where you never want to reach for your debit card.

1. When booking travel

This is where many credit cards are designed to shine. Credit cards routinely offer perks like:

• Travel insurance
• Rental car insurance
• Bonus points for booking travel
• Hotel and flight upgrades

The list goes on. And if your travels are taking you abroad, many travel rewards cards waive foreign transaction fees and still provide your normal protections while out of the country. Check the perks your travel card has or check out our list of best travel cards to get in the game.

Ready to upgrade your travel credit card game? Check out the travel cards our experts recommend to maximize your rewards.

2. When online shopping

By now we’ve all heard a horror story about online shopping. Your buddy thought the website was a little sketchy, but went ahead with the purchase anyway, because the deal was just too good to pass up. The next day he checks his bank account to see that $500 was spent at a Walmart six states away.

If you act fast enough, your debit card can offer you protections. Or you can sleep well at night by using your credit card at checkout, giving you peace of mind that you’re protected.

3. When making large purchases

While it’s a good idea for us all to spend within our means, sometimes we have to make big purchases. Whether it’s a new mattress, TV, or refrigerator, you might want to keep your debit card holstered for these types of purchases.

If your credit card is new, it might offer an intro period of 0% interest that will allow you to pay off your big expense without penalty. But major credit cards also tend to have:

• Purchase protection: If your package gets stolen or your item arrives damaged, this perk usually has you covered.
• Extended warranties: Some major credit cards extend manufacturer warranties, which can save you from costly repairs.

4. When building credit

Building credit is necessary, but can be tough to accomplish. Luckily, secured credit cards, student credit cards, and entry-level credit cards can help — debit cards don’t build credit. Your credit score is important, and maintaining healthy credit habits keeps your score high.

Use your credit card for small purchases or have a dedicated weekly or monthly expense on your card. Be sure to make regular on-time payments, paying your balance in full each time. This builds a positive credit history and keeps your credit utilization low — two keys to maintaining a high credit score.

5. When rewards are at stake

The rewards are one of the main reasons people use credit cards at all — so be sure you’re taking advantage of them! Credit cards routinely offer additional perks and cash back on different categories of purchases like:

• Dining out
• Grocery shopping
• Gas
• Travel
• And more!

Never spend more than you can afford to pay off each billing cycle, but review your card’s terms and make sure you’re using the right card each time to maximize your benefits. Don’t leave rewards on the table by using a debit card.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
Nobody needs a perfect credit score. In fact, there’s no real benefit to having a FICO® Score above 760 or so (other than bragging rights). With that score, you can get the best credit cards, the lowest mortgage rates, and more.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. That said, there’s no reason not to shoot for a perfect FICO® Score of 850. Here are two reasons why:You earn a perfect credit score by managing debt well.If your FICO® Score is 850, it can take a serious hit and still be in the “excellent” range.Only 1.54% of Americans had a FICO® Score of 850 as of mid-2023, according to Experian. Here are three things that could help you join that elite group.1. Always pay your bills on timeThe average American with a perfect credit score has never made a late credit card or loan payment. Most Americans have missed one or two payments — and this is the fastest way to tank your credit score.Keep in mind that lenders and credit bureaus have different definitions of “late.” If your credit card or mortgage payment is a couple of days behind schedule, then you’ll probably get hit with a late fee, but there won’t be any effect on your credit score.But if your payment is 30 days or more late, then your account may be reported as “delinquent” to the credit bureaus. This can cause your credit score to drop by double digits — or even 100 points or more.If you want a perfect credit score, then rule No. 1 is to pay your bills on time, all the time.2. Keep your credit utilization as low as possibleYour credit utilization is the amount you owe in revolving debt (namely credit card debt) divided by your credit limit. For example, if you have a total of $10,000 in available credit, and you’re carrying a balance of $5,000, then your credit utilization is 50%.You want your credit utilization to be low, because it means you’re not spending a lot of money that you can’t repay — and this will raise your credit score. The credit score elite keep their credit utilization low in two ways.First, they have low credit card balances. They pay their bills in full, or almost in full, every month.Second, they have higher credit limits than the average American. With an excellent credit score, you can get credit cards with high spending limits. On top of that, those with perfect credit scores have more credit cards than most people — an average of 5.8 cards versus 3.9 among all Americans.Put the two together, and Americans with perfect FICO® Scores only use 4% of their available credit on average.You don’t need a credit utilization ratio of 4% to achieve an excellent credit score (or even a perfect one). But it’s a good target to shoot for — and 0% is even better.Want to lower your credit card balances and save on interest? A balance transfer credit card can help you pay down debt faster and reduce your credit utilization. Click here to see our list of the best balance transfer cards and start saving today.3. Build and maintain a long credit historyThe length of your credit history accounts for 15% of your FICO® Score. The longer you’ve had open credit accounts, the better.This is part of the reason why older Americans tend to have higher credit scores. Baby boomers claim 59% of the perfect credit scores in the U.S., partly because they’ve had decades to establish their credit histories.If you haven’t started building your credit history, the best time to start is now. You can open a secured credit card with no credit whatsoever. Because your initial deposit doubles as your credit limit, there’s no risk that you’ll spend more than you can pay back, and all your payments will be reported to the credit bureaus.If you already have credit cards, then the best way to maintain a long credit history is to keep your oldest accounts open — even if you don’t want the cards anymore. Just use them a couple times a year to make sure they’re not canceled due to inactivity.Aim high — but don’t obsess over perfectionMost Americans are actually doing all right when it comes to their credit scores, with an average FICO® Score of 715 — firmly in “good” territory. If you can achieve a score of 760-plus, then you’ve “made it.” Your score is considered excellent, and you’ll enjoy the same perks as someone with an 850.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Nobody needs a perfect credit score. In fact, there’s no real benefit to having a FICO® Score above 760 or so (other than bragging rights). With that score, you can get the best credit cards, the lowest mortgage rates, and more.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

That said, there’s no reason not to shoot for a perfect FICO® Score of 850. Here are two reasons why:

1. You earn a perfect credit score by managing debt well.
2. If your FICO® Score is 850, it can take a serious hit and still be in the “excellent” range.

Only 1.54% of Americans had a FICO® Score of 850 as of mid-2023, according to Experian. Here are three things that could help you join that elite group.

1. Always pay your bills on time

The average American with a perfect credit score has never made a late credit card or loan payment. Most Americans have missed one or two payments — and this is the fastest way to tank your credit score.

Keep in mind that lenders and credit bureaus have different definitions of “late.” If your credit card or mortgage payment is a couple of days behind schedule, then you’ll probably get hit with a late fee, but there won’t be any effect on your credit score.

But if your payment is 30 days or more late, then your account may be reported as “delinquent” to the credit bureaus. This can cause your credit score to drop by double digits — or even 100 points or more.

If you want a perfect credit score, then rule No. 1 is to pay your bills on time, all the time.

2. Keep your credit utilization as low as possible

Your credit utilization is the amount you owe in revolving debt (namely credit card debt) divided by your credit limit. For example, if you have a total of $10,000 in available credit, and you’re carrying a balance of $5,000, then your credit utilization is 50%.

You want your credit utilization to be low, because it means you’re not spending a lot of money that you can’t repay — and this will raise your credit score. The credit score elite keep their credit utilization low in two ways.

First, they have low credit card balances. They pay their bills in full, or almost in full, every month.

Second, they have higher credit limits than the average American. With an excellent credit score, you can get credit cards with high spending limits. On top of that, those with perfect credit scores have more credit cards than most people — an average of 5.8 cards versus 3.9 among all Americans.

Put the two together, and Americans with perfect FICO® Scores only use 4% of their available credit on average.

You don’t need a credit utilization ratio of 4% to achieve an excellent credit score (or even a perfect one). But it’s a good target to shoot for — and 0% is even better.

Want to lower your credit card balances and save on interest? A balance transfer credit card can help you pay down debt faster and reduce your credit utilization. Click here to see our list of the best balance transfer cards and start saving today.

3. Build and maintain a long credit history

The length of your credit history accounts for 15% of your FICO® Score. The longer you’ve had open credit accounts, the better.

This is part of the reason why older Americans tend to have higher credit scores. Baby boomers claim 59% of the perfect credit scores in the U.S., partly because they’ve had decades to establish their credit histories.

If you haven’t started building your credit history, the best time to start is now. You can open a secured credit card with no credit whatsoever. Because your initial deposit doubles as your credit limit, there’s no risk that you’ll spend more than you can pay back, and all your payments will be reported to the credit bureaus.

If you already have credit cards, then the best way to maintain a long credit history is to keep your oldest accounts open — even if you don’t want the cards anymore. Just use them a couple times a year to make sure they’re not canceled due to inactivity.

Aim high — but don’t obsess over perfection

Most Americans are actually doing all right when it comes to their credit scores, with an average FICO® Score of 715 — firmly in “good” territory. If you can achieve a score of 760-plus, then you’ve “made it.” Your score is considered excellent, and you’ll enjoy the same perks as someone with an 850.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More