The Conclusion Of The Debit Card And Credit Card Debate!
The Conclusion Of The Debit Card And Credit Card Debate!: Plastic money is trending and the two most common types moving around in the market are debit and credit cards. They look alike, with 16-digit numbers on them, expiration dates and PIN codes. However, the usage and functionality of each card is entirely different.
Debit cards provide bank customers the option to spend money by drawing the amount already deposited with the card provider. Whereas a credit card, as the name implies, allows a bank customer to borrow money from the card issuer to purchase items or withdraw cash up to a certain limit. So Debit Card or Credit Card? Which one is better?
There are various factors to consider when making a decision. This article elaborates on a few important ones.
Debit cards usually have less or no fees of any kind, unless of course the customer spends more than there is present in their account. Overdraft facility is not available in all debit cards. On the other hand, credit cards typically charge annual fees, exceeding-limit fees, delay in payment fees and monthly interest on the card’s outstanding balance as well.
A debit card gives more control on spending as compared to a credit card. Frugal spenders opt for debit cards and compulsive spenders should opt for debit cards as a debit card draws on money the bank customer already has.
To avoid the temptation of credit, impulsive buyers should shop with debit cards; research tells that people usually spend more using credit cards compared to dealing in cash.
A bank customer can reap more rewards with credit cards, including cash, discounts, travel points and many other purchase offers not available to debit card holders.
As opposed to debit cards, credit cards at times provide additional warranties and insurance for items purchased, which the retailer may not offer. For instance, if you buy something with a credit card and it becomes defective post the manufacturer’s warranty expiration date, you can claim it at your credit card company.
Debit Card or Credit Card? Which one is better? It all depends on your spending habits.
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