With the boom in online industry, the use of both credit and debit cards has increased immensely. If you are someone who wants to ensure maximum productivity from these payment methods, you have landed on the right place as today we are discussing when and how to use credit and debit cards considering some of the most important factors.
When to use Debit cards
- If you are shopping at small stores, you should use a debit card and save your credit card for expensive purchases.
- If you are planning a budget and can’t afford to spend extra money, always use debit cards. The concept of debit cards is very simple: you can only purchase items that you can afford and this saves you from paying interests too.
- Using credit cards is great for transactions abroad but if you want to get the best exchange rate on foreign currency, pick your debit card.
When to use Credit cards
- If you are looking to get something on rent, use a credit card as many rental agencies require customers to provide credit card information as a backup.
- If you’re looking for large purchases or electronics purchases mainly, use credit cards. Most companies offer warranty protection for your purchases just for using a credit card. Some of the extra discount offers in electronics, appliances, or other large purchases are very beneficial.
- A credit card makes it easier to avoid losses from fraud. If your debit card is used by a thief, it can take a while for the fraudulent transactions to get the money restored to your account. In comparison, if your credit card is used fraudulently, you aren’t out any money. All you have to do is notify your credit card company.
With the growth of fintech startups, EMI is available on both debit and credit cards. In short, both payment cards are very useful, but if credit cards are not used wisely, you could end up with a bad credit score and pay late payment fees and interest. For debit cards, it is easier to maintain a sufficient balance.
