In today’s market, one of the most popular ways to pay for things is with plastic. And by plastic we mean a debit or credit card. Both of these means of payment have one thing in common, and that is your checking account. Almost everyone these days has a checking account where they keep their money that they use to spend on whatever they need. If you use a debit card to make your purchases, then you will have that money immediately withdrawn from your account. If you use a credit card to purchase something then you will pay your bill at the end of the month, most likely, with money from your checking account. Using either one of these methods will get you the same result as far as buying something, but if you choose to use your debit card, then you are missing out on two important features that credit cards offer that could save you a lot of time and money.
As said before, when you make a purchase with your debit card, the money is immediately withdrawn from your checking account. Therefore, if someone obtains your debit card information and uses it to spend fraudulently, they basically have access to all of the funds in your checking account. Banks do offer fraud protection when you use your debit card, but there are many hoops to jump through if you are a victim of fraud. And this process takes time in order to get the money back that was stolen from your account. It is possible for someone with your debit card info to spend a good portion of the money in your checking account in a day. And just because you were the victim of fraud doesn’t mean that you immediately get that money back. So, if you have bills to pay each month, you need to some how make up for your money that was stolen until you hopefully get it back.
With a credit card, according to the Federal Trade Commission, you are only responsible for the first $50 of fraudulent charges billed to your account. And most credit card companies do not hold their customers to this. They will likely credit the entire amount of fraudulent charges back to your account, once they determine it was not you who made the purchases. Once you report that there is illegal activity on your card, card companies will most likely change your account information and issue you a new card, therefore ended whatever fraudulent activity is going on. All of your money is still safe in your checking account and you can go back to life as normal as far as your finances are concerned.
Being the victim of fraud is something that no one should ever go through. But if it is your credit card info that was taken, then all you have to do is spend some time on the phone with the credit card company and wait for your new card to come in the mail to get back to normal. With a debit card it could be weeks or months before your money is recovered and you could even be liable for some of the fraudulent charges that were made.
Credit Card Rewards
Out of the many different options for the best debit cards out there, it would be very hard to find one that offered any sort of rewards for the money that you are spending. This is the exact opposite when it comes to credit cards. There are many credit cards that offer a wide array of rewards for the money that that you spend with them. These rewards can range from free or discounted travel, to statement credits, to cash back, and more. No matter whether you use a debit card or a credit card, you are doing the same thing, and that is spending money. But with certain credit cards you can have the opportunity to earn some rewards for money that you were going to spend anyway. Having the option of using two different cards that look exactly the same doesn’t seem like that hard of a decision. But when one pays you back for spending while the other does not, the decision should be much easier to make.
Time and Money
Even though debit and credit cards look the same and are used in the same way, they can be two completely different products. Credit cards offer much better protection when it comes to being the victim of fraud. You can save a lot of time and headaches getting your finances back in order with a credit card. And you can also have the opportunity to earn, with a rewards credit card, on the money that you spend. The only drawback to credit cards is that you can spend money that you do not have. Where as, a debit card will be declined if you do not have the money in your account. But, if you are responsible with your spending, you will find that the benefits of using a credit card far outweigh those of using a debit card.
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