The reason for the widespread use of debit cards lies in their convenience and direct access to one's funds without the need for cash.
In the ever-evolving world of finance, a notable change has been observed in the way people are making purchases. According to an analysis by the Wall Street Journal of Visa and Mastercard data, debit card spending grew faster than credit card spending for the first time in years during the first half of 2025. This shift is not without reason, as the benefits of using credit cards strategically are becoming more apparent.
Ted Rossman, a senior industry analyst at Bankrate.com, has been at the forefront of this analysis. Hired by Bankrate.com, Rossman focuses on the credit cards industry, the economy, and banking. His latest findings suggest that the benefits of using credit cards for at least some purchases can outweigh the potential risks of overspending and interest.
One such advantage is the ability to build a credit score while earning rewards. For instance, the Blue Cash Preferred® Card from American Express awards 6 percent cash back at U.S. supermarkets (up to $6,000 in annual spending, then 1 percent back after that). This means that using a credit card at the grocery store can effectively lower your supermarket bill by 6 percent.
However, it's important to note that being selective about using credit cards is key. About 54 percent of credit cardholders pay their bills in full each month, according to the latest credit card debt report. Using a credit card like a debit card (paying in full to avoid interest) can help avoid the biggest drawback of credit cards while still having access to benefits like rewards programs, travel insurance, purchase protection, and extended warranties.
The economic uncertainty has led lenders to pull back on credit issuance, making it harder for some to access credit cards. However, the CARD Act made it harder to get a credit card before age 21. Despite these challenges, Gen Z shoppers (18-28 year-olds) are the most likely to use debit cards; 70 percent plan to use them this holiday season.
Debit cards are projected to be the most popular payment method during the 2025 holiday shopping season, according to Bankrate.com's 2025 Early Holiday Shopping Survey. Six in 10 holiday shoppers (61 percent) plan to use a debit card for at least some of their purchases, while 57 percent plan to use credit cards.
Using a debit card in specific situations, such as when paying with a credit card would be more expensive or to avoid out-of-network ATM fees, can be beneficial. It's also worth noting that only 57 percent of Gen Zers have credit cards, compared with 72 percent of millennials, 72 percent of Gen Xers, and 84 percent of boomers.
For those who do have credit cards, being selective about using them can help strengthen your credit score, earn rewards, and take advantage of other benefits. For instance, the Blue Cash Preferred® Card from American Express charges a $0 intro annual fee for the first year, then $95, but the rewards surpass the annual fee once you spend about $1,600 in a year.
If you have questions about credit cards, Ted Rossman, the author of this article, can be contacted at [email protected]. Using cash sparingly is also mentioned as a strategy in the article, emphasizing the importance of making informed decisions when it comes to managing your finances.
