4 Reasons To Use A Debit Card Vs. Credit Card

The use of credit or debit cards has been a good way to bring about convenience in terms of money transactions and management. Both debit cards and credit cards are currently being used all over the world to facilitate money transactions from one point to another. Each of them has its own advantages and disadvantages, with many financial experts and users favoring one over the other.

Below are a few advantages that the debit card has over the credit card.


1. Enhanced Protection

Anyone can steal your credit card or your wallet can get misplaced or stolen with your cash in it, but no one will get to steal your money in the debit card. This form of security is what debit cards offer. The debit card usually has a PIN which will be known by you alone. In the event that it is stolen, you can call your bank fast enough and have it blocked so that it cannot be accessed by another person. Such assures you that your money is safe and that you can access it once you get a new card. For instance, your $10,000 is safe in your debit card than it is in your pocket or bag.


2. Easy to Manage Debt and Spend Money

Temptations to spend can be overwhelming, especially if you have a loaded credit card. Using a credit card is like taking a loan from your card provider and promising to pay back later. It is very easy to overspend when you have a credit card than when you have a debit card, thereby landing yourself in debt.

With debits cards, you are in control of your cash. The money you use is straight from your bank account and you get to spend only what you have in your account. For instance, if $4000, is what is in your account, that is what you will get to spend. This prevents you from getting into unnecessary debts. Furthermore, debit cards make it easy for you to compare and contrast every transaction and know where you are going wrong with your money.


3. No or Fewer Maintenance Charges

Both debit and credits will demand you to make an application, but the difference comes in terms of ease of application and maintenance.

For the credits cards, the process is a tedious one. In fact, for you to acquire one, your credit rating needs to be verified in depth. If it’s good, you will qualify for the credit card and if it’s bad you will be denied.

With debit cards it’s different. In fact, once you have opened a bank account, you will be issued with one instantly. Additionally, you will not have to worry about maintenance charges and payback bills, compared to the credit cards which you will be issued with monthly bills that you must pay. Failure to pay, you will attract penalty interest charges and late payment fees among other charges. 


4. No Checking

With debit cards, there is no checking involved. The process of transactions is pretty much straightforward. Do your transaction, get your money and receive an instant receipt. No verifications required except for your authorization PIN.

On the other hand, credit cards have numerous checking you need to fulfill. Besides authorizing for credit transactions, you will have to constantly check with your credit provider for the status of your card. In most cases, the card will have reached its limit without even you knowing. Moreover, you will have to safely keep all your credit records sent by your provider for easy reference and tracking.