Advantages of using a debit card over a credit card
In today's world it is not always easy, or even possible, to pay for purchases using cash. Many people do a lot of their shopping online where it simply isn't possible to pay in cash, having a credit card is the obvious way around this; however it may be just as easy and cheaper to use a debit card instead.
There are many advantages to having a debit card, the first most obvious advantage is that you cannot spend more money than you have with a debit card. As any money spent comes directly out of your bank account, there is no possible way for you to spend more that you have in that account. There is also no way of going over your limit like you can with a credit card, which can be a costly experience as the credit card company will charge you for going over your limit.
Another great advantage of using a debit card is that you will have no interest to pay on your spending. If you have use a credit card you will usually be charged interest on any balance on the card until such times as the balance is cleared, again this can be a costly experience if you cannot pay the balance in full each month.
Another great advantage of using a debit card is that you will have no interest to pay on your spending, although you may be charged interest on your overdraft if you are using one. If you have use a credit card you will usually be charged interest on any balance on the card until such times as the balance is cleared, again this can be a costly experience if you cannot pay the balance in full each month.
Debit cards are especially useful when going to pay for expensive items as they save you from having to carry a large amount of cash. Many people don't like carrying cash as they feel it is too dangerous they worry that they may be attacked and the cash stolen. If the worst was to happen and your debit card is stolen it is extremely easy to cancel it and have a new one sent before any damage can be done by the thief. If a thief has spent some of your money you will usually get it back provided you have reported your card stolen in a timely manner.
If using a debit card rather than a credit card whilst out shopping you may find that you are less likely to buy things on impulse with the attitude that you can pay for it later, because with a debit card the money is coming straight out of your bank account. This may prevent you from purchasing something expensive that you don't really need in the first place and end up struggling to pay for it for months.
A debit card can be used just like a credit card, giving you all the convenience of a credit card but none of the bills or expense. You can use your card in store, online or even over the phone to pay bills etc. You can also link your debit card to online payment services like Paypal to make using your card online even easier. Many people find the convenience of a debit card something that they could no longer live without as there are so many advantages of using one.
Do you prefer to use a debit or credit card?
Another benefit of using a debit card is that many banks now offer reward programs to customers where you can earn rewards simply for using your card. These reward programs vary between banks but are often in the form of cashback which you can earn if you use your card in certain shops.
The debit card companies themselves (rather than the banks) also run competitions from time to time and the only thing you have to do to enter is to use your debit card within a certain timeframe. Some major banks are also running a promotion at the moment where they are refunding one debit card purchase a month to a certain number of randomly picked customers. Again all you need to do to be entered into this promotion is to use your debit card to pay for something and if you are one of the lucky people picked that month you will receive a refund for one of your purchases.
Of course there is no guarantee that you will win one of these promotional competitions and you of course should not go out and make a massive purchase in the hopes of winning a refund of that purchase, but it is a nice perk for those who are lucky enough to win.
Credit cards obviously have their advantages as well, but in many cases there are more advantages to using a debit card. If you can afford to pay for something in full you are almost always going to be better off using your debit card over your credit card.
There are some exceptions to that rule though, particularly if you are making a large purchase. Not only does using a credit card allow you to split the cost if you need to, but you are also protected by your credit card company. If something is wrong with your purchase and the retailer can't or won't help you, your credit card company will usually refund the cost of the item if it cost over a certain amount.