Over the years, many people have switched from carrying around cash to keeping plastic cards only. It can be difficult, though, to choose if you want to carry a credit or debit card around. If you’re having trouble deciding, take a look at these factors.
Fraud
One of the most significant benefits that come with having a credit card is fraud protection. This means that if someone steals your credit card and spends money off of it, you won’t be liable for any fraud that happens as long as you report that card is stolen.
For debit card owners, you can get some of your fraud reimbursed, but you might have to pay up to $500 if you wait until two days after your money gets stolen from you. It can be way worse if you wait more than 60 days as you will then be liable for any money you lost. Overall, you should probably think about getting a credit card if you’re primarily worried about fraud.
Balance
Credit cards benefit from fraud protection, but it’s good to think about how the balance of a credit card works as well. For example, you might see that you have $10,000 available in credit, but you might not think about that money in terms of you having to pay it back later. This can cause a massive issue for those who are impulse spenders.
For those that are bad with their spending habits, using a debit card instead can be beneficial for you as you’ll always know how much money you have available without you going over the line. You’ll also be able to quickly transfer money from your debit card to any of your savings accounts without thinking about the high fees cash transfer can take from credit cards. Overall, this should get you strongly thinking about getting a credit card if you’re someone who worries about spending too much money.
Rewards
When you purchase items with a debit card, you typically don’t have a rewards system. The reason for this is that you don’t have a bank hounding on you to spend their credit lines, so they end up with a lot more money down the line. This is where credit cards can come in handy.
With credit cards, you could earn various rewards just by making purchases every day. These rewards can vary from taking a free vacation or getting a gift card to your favorite store. As long as you’re a careful person, it can be more beneficial for you to use a credit card if you’re interested in rewards.