Did you know that you might be better off using a credit card over a debit card for all purchases of day? Make no mistake - a debit card is a convenient device to make purchases. It saves you the hassle of having to carry around a checkbook, and gives you the protection of not having to carry large amounts of cash. But there are drawbacks to using a debit card, even for people who wish not to use a credit card keeps them out of debt. That's where a phased credit card.
5 advantages of using a credit card
1. Earn Rewards. If the reason you avoid credit cards in favor of debit usage is to stay out of debt, you are doing yourself a disfavor. Although it is a great thing to stay out of debt, you can always do with credit cards as long as you do not keep a balance on them. Treat credit card as cash is and make sure you have the money to back up all our purchases. By doing this, you'll be able to pay off the balance and reap the benefits of the card.
There are so many out there credit cards that allow you to win numerous awards, air travel and hotel stays cash back. By not using a credit card, you are missing out on fantastic opportunities for reward. If you have a history of credit card debt or trouble controlling your spending, a credit card may not be good for you. However, there is no reason not to enjoy your rewards if you are economically sound.
that rewards credit cards are the best?
With so many rewards credit cards to choose from, it can be quite overwhelming when you decide which is best for you. That's why we detailed the best cards for each of the award categories.
Best to travel: Arrival Barclaycard more World Elite MasterCard
Best for cash back Blue Cash Card from American Express preferred
Runner-up for cash back: Citi Double Cash
2. Protection against fraud. In case your card is stolen and used fraudulently, federal law provides the best protection for credit card users, according to the Federal Trade Commission. You will not be responsible for fraudulent purchases made with your credit card $ 50. Better yet, if you report your card stolen before a purchase is made, you are not responsible for any unauthorized use.
On the other hand, if you make a purchase with a debit card, funds from your bank account are immediately removed. This means a thief can use your card to drain your account of thousands of dollars before realizing what happened and report the card as stolen or freeze the account. According to the FTC, if you declare the debit card missing after two days, you can be on the hook for $ 500, and worse, you will be responsible for all charges if you wait more than 60 days to report the incident.
3. Book a hotel or rent a car with ease. Most hotels and car rental services will still allow you to make a purchase with a debit card, but it is not the most convenient way. Indeed, these services usually place a hold on a few hundred dollars on your card, which freezes money in use, to secure booking.
Although the same is done with credit cards, it is more troublesome for debit card users. Why? Because it real money in your bank account that you can not use. When a credit card is used for a hotel or a rental car, a portion of your available credit, not real money, is bound as protection for the transaction.
To top it all, your credit score could take a hit if you use a debit card to rent a car. In fact, often times the rental companies will take a hard credit inquiry to someone using a debit card to rent a vehicle. They may even refuse the lease holder if their score is too low.
4. Build a credit history. This is a simple, but the more credit you have and you have, the easier it is to get a mortgage or car loan with good terms. Using the credit responsibility will improve your score significantly over time, giving you access to the best interest rates and rewards credit cards around. On the other hand, it may be more difficult to build your credit if you use your debit card.
5. Avoid fresh. The use debit cards may incur a number of costs, overdraft charges if you do not have enough money in your bank account, to drag the fees for individual transactions. If you like using debit cards, but are concerned about overdraft fees, consider using a prepaid debit card. Oh the other hand, a number of credit cards, such as the card itself Discover, offers 0% Intro APR, so you will not incur interest charges if you do not pay your bill in full. Better yet, many of these cards do not come with a fee for use.
Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author's alone, not those of the credit card issuer, and has not been reviewed, approved or otherwise endorsed by the credit card issuer. This content was accurate at the time of this post, but the terms and conditions of card can change at any time. This site may be compensated by the sending credit card affiliate program.