I have used a debit card for well over 10 years now. I use it to pay for nearly everything I buy, and I rarely carry cash on me anymore. I use it to book vacations, buy groceries, shop on line, and pay my bills. There is no fee, and it is accepted everywhere credit cards are taken. I even earn rewards on it through my bank each time it is applied towards a purchase. Below, I will outline 5 pros to having a debit card.
First, carrying a debit card is more practical than carrying cash. If you lose your cash, you are out of luck. It cannot be replaced. If you lose your debit card, all you have to do is call your bank. They will give you a temporary card, and order a new one for you. It usually takes about 5 – 7 business days for the new one to arrive, and you aren’t out any money. This happened to me last year, and I was grateful that it hadn’t been cash that I lost.
Secondly, a debit card is linked to your checking account. This makes it very convenient to pay your bills on line. In my experience, I haven’t found a bill that I couldn’t pay through my computer by using my debit card. I pay for everything from utilities and car payments to store cards and Visa by using my debit card. There is no need for paper statements by paying bills this way, which keeps the world a little greener.
Thirdly, while paying by debit card, instead of credit, you don’t have to worry about paying interest on your purchases. You are paying up front for a product, instead of over a certain term. This saves the consumer money in the end, especially with some credit cards carrying very high interest rates.
Fourthly, you can earn rewards through your bank by paying with debit cards. Each time you use your debit card to pay for something, you are earning a certain number of points per dollar spent. These points, are later traded in for cash or gift cards. I usually earn 10 – 15 gift cards a year. In the past, these gift cards have been from: Starbucks, Outback Steak House, Panera Bread, and TGI Fridays. They range from $10 – $25 apiece. If you save your points, you can trade them in for iPods and televisions.
Finally, a debit card keeps you on budget. You can only use what is in the account associated with the card. This prevents you from accumulating debt and having to pay interest on it. And, you don’t have to worry about the late fees that your credit card company would charge.