Tuesday, February 7, 2017

Which is a better Option to go for: Debit or Credit?

Which is a better Option to go for: Debit or Credit?


Debit or Credit Which is a better Option to go for: Debit or Credit?

    image creates wikipedia

Many people wonder about this question and many are even asked of. Whether they will use credit card or debit card? People themselves also consider which one is a wise and better option to go. Both types of cards have their pros as well as cons. It is up to any person to decide whether he or she would be able to pay daily expenses and or debts with the help of credit or debit card.

People are nowadays carrying cards with them as it is a safer option and also the requirement to carry more cash reduces with the availability of card. Plus paying off bills or paying money in stores with a card is also easy now. But the question still remains whether it is better to carry a credit or debit card in purse?

Pros of the debit card

Debit card has its own set of advantages. The biggest advantage of using a debit card is that it allows the user to spend only the amount of money that is present in the account. This account does not give the advantage of giving the user any credit above the amount that is present in the account. So falling prey of debt is totally impossible in this case. Having a debit card that gives its customers reward points is equally beneficial.

Disadvantages of using a debit card

The disadvantage of using a debit card is that it does not provide additional security by Visa. While using debit card for paying bill at stores, the pin of the card is asked for, this is also not quite secure.

Pros of the credit card

Credit card gives the facility of giving credits to the customers, so people who like to indulge in shopping can consider it as a benefit. If customers get cash back on credit cards, they can discount on items purchased as well.

Credit cards nowadays comes with many facilities for the customers, such as giving bonus to people on signing up for new cards. With the facility of credit card option, customers get protection on their transaction via Visa policy or any other credit card companies.

Cons of the credit card

Since the facility of getting credit on the card is quite easy, many people also get under debt and on later stages they are not able to pay off this debt. The amount that can be taken on the card as credit is up to a certain limit only, hence limiting the usage. The annual fees of different credit cards are usually way more than the debit card.

Going for silver or platinum card?

Whether it is a debit card or a credit card, several options have come up such as visa, platinum or titanium card. Students are advised to opt for the first level card as there is no fee involved in it.

When signing up for a card, it is important to carefully analyse the different types of cards, its features related to yearly fee, and discounts and offers provided by different cards. If you want to learn more details please visit Morgan Finance Today.

Tags: ,

Relevant Articles