Five Reasons to Reach for Your Debit Card Instead of Your Credit Card
It’s true that there are some compelling reasons to reach for your credit card instead of your debit card. It’s convenient, especially since you don’t have to pay until later. They can also protect you in the case of fraud, but there are a lot of problems that come with credit card use too.
In some cases, it’s actually much better to use your debit card instead.
It Comes With the Right Protections
One of the best reasons to justify using a credit card instead of a debit card is the fact that credit cards come with some great protections. Fraud is a lot easier to detect, and you will never be liable for fraudulent charges. However, if you have the right debit card, you will enjoy many of the same protections you would enjoy if you were to use a credit card instead.
For example, the ProFed Visa Debit Card comes with powerful protections that include:
- Protection against fraudulent charges
- Continuous fraud monitoring
- Three-digit security code for online purchases
Whether you use a credit or debit card, it is important to keep track of your accounts. The quicker you identify fraud and inform your card provider, the quicker they can freeze your account, issue you a new card, and refund your money.
You Don’t Have to Worry About Interest or Fees
Although using a credit card is convenient, it can also be expensive. Credit cards can come with steep interest charges.
Figuring out the interest being charged isn’t all that easy either. Your rate is often dependent on your credit score. Lower scores often come with higher interest rates, but if you had a high rate and your credit score improves, your interest rate isn’t likely to change unless you call and speak directly to your card issuer about the possibility of lowering your rate.
Fees are also an important consideration. Some cards charge annual fees, in addition to interest. You may also pay fees for withdrawing cash or for using your card overseas.
When you use a debit card, you don’t have to worry about these exorbitant fees or interest rates.
It Can Help Small Businesses
It’s great to support small, local businesses (click here to start your own small business now). They appreciate your support too! Unfortunately, using a card can come with high costs for those businesses that don’t make a ton of money. That’s because credit card fees are charged to businesses for processing transactions.
It’s true that charges come with the use of both credit and debit cards, but fees are often smaller for transactions using debit cards. You can actually help your favorite local business keep more of their money by using a debit card.
The size of your purchase matters too. If you really want to help your local businesses, use your debit card to make larger purchases. Fees are often reduced or eliminated altogether for certain dollar amounts.
It Helps You Limit Your Spending
There are tons of ways to save money. You can get rid of services you don’t need and go to the grocery store with coupons, but one of the easiest ways to reduce your spending is to use your debit card instead of your credit card.
Because you don’t have to pay right away when you use a credit card, and when you do pay, you only have to make a small payment, it’s tempting to spend more than you should. You’re more likely to take impulse spending more seriously if you’re using your debit card, which means you’ll be less likely to make frivolous purchases.
When You’re Keeping an Eye on Your Credit Score
Credit cards can help you establish your credit, but it requires vigilance. Missing just one payment can greatly impact your score, as can spending close to your limit and only making minimum payments. It’s much better to have a few easy-to-pay-off, fixed expenses on your credit card and use your debit card for everything else. That way, you won’t find yourself in debt that you can’t pay off, and you can reduce the chances of your card having a negative impact on your credit score.
Both credit cards and debit cards can come in handy, but there are definitely times when one is better than the other. If you have to make an important home or car repair, you may have to use your credit card. However, if you have the money in your bank account, there are many convincing reasons why you should use your debit card instead.
