Paying with cards is certainly faster and easier than paying with cash, but do you know when to use a debit card and when to use a credit card?
Although debit cards offer protection against fraud and theft, they should be used with caution as they are directly linked to your bank account. Keep your PIN safe and be aware of your surroundings while at the ATM. Check your statements often and, if you notice any, report suspicious activity to your bank immediately.
“Protection against debit card fraud depends a lot on how quickly you report the fraud, and a thief could empty your bank account before you even know your information or card has been stolen,” says Brooklyn Lowery, editorial director of the credit comparison site. CardRatings tab.
Although debit cards are often used, in some situations it is better to use credit cards. Below we explain when you should use which card.
Debit card
Use a debit card when you want to control your spending. You can use it for everyday shopping, especially if you don’t want to overspend.
“I recommend using debit cards for everyday expenses except in high-risk situations,” says Vanessa Perry, credit expert and owner of Impeccable Credit Services.
It’s easier to keep track of incoming and outgoing expenses on a debit card, and if you’re not careful, a credit card can lead you to make impulse purchases. So you can quickly fall into debt.
Financial advisor Jamilah N. McCluney explains simply how to use a debit card. “Treat your debit card like cash.”
There’s another case where it’s better to use a debit card than a credit card: use a debit card to withdraw cash.
Credit card
In three cases, it is more beneficial to use a credit card. It is safer to use a credit card for online shopping, mainly so that your private information is not everywhere on the Internet.
Use a credit card for all recurring payments. For example, for annual or monthly subscriptions to services such as Netflix, Amazon Prime or Spotify, use a credit card.
Be sure to check your credit card statements to know what subscription services you are being charged for. This will prevent you from wasting money on services that you may no longer use.
Use a credit card in emergencies, especially in situations where you have an unexpected expense and need a certain amount of time to pay it off, advises RealSimple.
They also add that you can use the credit card for everyday purchases, but make sure that you use the card responsibly and that you do not exceed the set limits.
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