When it comes to using debit cards, there are many advantages over using cash or a credit card. Debit cards are being offered now through most banks and most stores also are now accepting debit cards. If you have ever thought of getting a debit card then you might want to read about these five advantages of using a debit card over cash or credit cards.
1. One of the biggest advantages of using a debit card is that you can only use the money you have in your account. A good heart will not let you spend more money than what you have in your account, which eliminates going into the negative. Using a debit card instead of a credit card is really good for people who tend to spend too much money. The bad thing about credit cards is that there is no limit to the amount you can charge, which means you accrue a lot of debt.
2. Another good thing about using a debit card instead of a credit card is that you will not be charged interest. When you buy something with a credit card, you pay the amount of the purchase with a percentage of interest on top of that. For instance, if you buy a pair of 20 dollar shoes with a credit card, you might be paying five dollars for interest. If you use a debit card to buy the same pair of shoes your final cost will just be 20 dollars. When you use a credit card to make a purchase the interest can really add up over time and you might be paying more on your monthly bill.
3. Using a debit card instead of cash is also better because you do not have to worry about physical bills. Carrying money on you can have a lot of risk, including theft from your wallet. If you use a debit card instead of cash you can eliminate the risk associated with carrying money on you. In these hard times, there are people that are trying to get in your pocket to steal your money. If you do not carry cash on you and just use a debit card, you are eliminating the potential risk of theft. If you are someone who often misplaces things then using a debit card would also be better than cash. Sometimes you might forget how much money you have or you might lose a couple dollars bills getting something from your wallet. Using a debit card instead of cash just eliminates the hassle that comes with carrying cash in your wallet. For some people getting out the debit card is easier and quicker than trying to count amounts of money.
4. Using a debit card is also great because after you make a purchase you have the option to get cash back. When you swipe your debit card at the store many locations will offer various cash back amounts for free. Instead of going to the ATM and withdrawing a certain amount of money, you can just take out the money out after you make a purchase. When you take out money using your debit card, it is very and you do not get charged a penalty from your card company. There is usually limit at the store for how much you can take out from your debit card, but it comes in handy if you need some spare cash. This is much better than carrying cash because you can determine the amount of money you want to take out and nothing more. This is something I do on a regular basis because it prevents me from getting charged if I want to take out a few dollars out of my account. There are many fees associated with using an ATM, and by using the cash back option you can eliminate wasting your money. Typically with a credit card you can not get cash back and if you do, then you have to take it out at an ATM.
5. Using a debit card instead of a credit card is also a good idea because they are more secure. When you use a credit card usually all you need to do is sign the receipt and usually they do not ask to see identification. If you use a debit card then you have to enter your pin number, which validates the purchase. A lot of stores prefer a transaction, where you have to enter a pin number because it reduces the risk and cost for them. It is a lot easier for a thief to use a credit card to make purchases than it is a debit card where they need your pin number. When you make a purchase, entering your PIN number is like an alternative form of identification used for validation of ownership. When it comes to the difference between a debit card and a credit card the main thing is that a debit card is more secured to prevent unauthorized use.