How to transition your spending from a debit card to a credit card
Editor's Note
If you’ve been using your debit card for all your purchases for years — carefully tracking your checking account balance and not spending more than what you have in the bank — shifting your spending to a credit card can be a big change.
I used to be one of those people who paid for everything with their debit card because they were afraid of racking up debt. I thought debit cards were the safe spending option since you can’t spend more money than what you had in your account.
At the time, that was what financial responsibility looked like for me. However, my perspective changed as my interest in travel grew, and I learned that I could earn big rewards by applying for and using credit cards.
Maybe you already have a rewards credit card but are hesitant to shift your spending to credit cards. You’ve possibly signed up for a credit card and charged enough to meet the minimum spending requirement for a bonus, but after that, you always return to using your debit card.
If you’ve been on the fence about switching your spending from debit to credit, here are a few tips to help you make the change.
Related: Credit vs. debit cards: Which is the smarter choice?
Adjust your mindset
When I first decided to shift my spending to credit cards, I knew I wanted to be a responsible credit card user. I didn’t view a credit card as free money or a long-term loan to repay over time through minimum payments.
Paying interest was a no-go, which meant not charging more than I could pay back each month.
One thing that helped me is that I treated my credit card just like my debit card. That meant not spending more than I had in the bank. Even though my credit card did not withdraw directly from my checking account for every purchase (as my debit card did), I acted as if it did.
Maybe you made only minimum payments on credit cards in the past. If so, paying it in full will require adjusting your mindset. View your credit card just like a debit card. Don’t spend more than you can pay back every month.
Related: The best way to pay your credit card bills
Know your credit limit
You’ll want to avoid accidentally exceeding your credit limit on a lower-limit card. If you do, transactions may be declined, or you may be charged fees. But you also shouldn’t view cards with high limits as a free pass to max out your card.
Keeping your balance within a reasonable limit of your available credit can boost your credit score. Your credit utilization ratio makes up 30% of your FICO score, so keeping your balance in check is important.
Related: TPG’s 10 commandments of credit cards
Start with just one card
Maximizing your points- and miles-earning often involves strategizing which cards to use for different purchases. As many cards come with category bonuses — bonus points for different types of spending, such as restaurants or gas stations — it can be quite lucrative to use different cards for different purchase categories.
That might mean using an American Express® Gold Card for 4 points per dollar at restaurants worldwide (on up to $50,000 in purchases per calendar year, then 1 point per dollar) and U.S. supermarkets (on up to $25,000 in purchases per calendar year, then 1 point per dollar).
However, remembering which card to use for each purchase can feel overwhelming if you’re new to travel rewards and using your credit card for everything.
A good way to maximize points earned using only one card at a time is through new card welcome bonuses. Open a new credit card and use only that card until you meet the minimum spending requirement (which is required to earn the welcome bonus), being sure to pay off your balance in full every month.
Once that’s complete, apply for another card and shift all your spending to that card. You’re generating lots of points by earning welcome bonuses, even though you may not utilize all of the bonus categories you could maximize by juggling multiple cards.
But remember that some issuers — including American Express, Chase and Bank of America — limit the number of cards you can be approved for over a certain period of time.
Once you’re comfortable with consistently paying your balance off in full every month, you can add more complexity, like switching your spending to different cards to take advantage of category bonuses.
Related: The ultimate guide to credit card application restrictions
Shift any automatic payments
Automatic payments make life easier by knocking one more thing off the to-do list. If you have automatic transactions using your checking account or debit card and use your credit card for other purchases, tracking your finances can get complicated. There’s more to manage. Keep it simple by shifting as many automatic payments as possible to your credit card.
You likely can't use your credit card to autopay everything. Your mortgage and car payments are good examples. You’ll still have to track those in your checking account.
Yes, some services will accept your credit card for a fee and send a check to your loan company or other merchants, but you’ll have to weigh whether the fee is worth it for you.
For your other bills — such as your cellphone, utilities, fitness club membership and streaming services — it should only take a few minutes to update your payment online, and then you’ll start earning rewards for those purchases.
Related: 4 ways to manage your spending on multiple credit card accounts
Review your transactions
Whether you check your credit card account daily or monthly, it’s important to take the time to ensure all your transactions post correctly.
You’re not just reviewing transactions for the correct amounts, but you should review your points earned to verify you've earned the correct amount of points. And check for any statement credits you expect to receive, such as from Chase Offers or Amex Offers.
Related: How to identify and prevent credit card fraud
Set up autopay or schedule manual payments
You don’t want to forget a payment and incur late fees and interest. While some card issuers may waive late charges and interest as a one-time courtesy, you shouldn't get in the habit of paying late.
Determine a payment schedule that works best for you. Some people pay weekly; others pay monthly. If you’re afraid of overspending and not having the money in your checking account to pay the bill, don’t wait until the due date. You can make multiple payments, even paying off balances daily or weekly.
If you're concerned you may forget to pay your bill, you should set up autopay for your full balance (ideal) or the minimum balance by the due date. Alternatively, set reminders on your phone for each credit card, ideally a week in advance and again a couple of days before your due date.
Related: How to set up autopay for all your credit cards
Bottom line
I'm a longtime travel rewards enthusiast, and I spend significant time and energy learning how to maximize my spending and earn rewards. However, it can feel like everyone is signing up for new credit cards (and spending thousands of dollars on them) to generate points for first-class flight redemptions and luxury hotel stays.
But that’s not the case. Even still, I'm still surprised when a friend or family member pulls out a debit card to pay for a purchase. Even though they may be interested in travel rewards, moving from a debit card to a credit card can be nerve-wracking, and I understand that.
Switching from debit to credit was one of my best money moves. My only regret is not doing so sooner.
Related: 4 reasons why you shouldn’t use your debit card (except at ATMs)
TPG featured card
Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.