Many consumers find credit cards to be convenient and easy to use, but as debit cards have come into greater use, a lot more people are realizing that they are preferable to credit cards. Before you decide to add a credit card to your wallet, think about these reasons why a debit card from your local bank would actually be better.
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1- The Same Convenience
The appeal of using any type of card is how quick and easy it is to use. There’s no need to stop at the ATM or write a check. Simply present the card and complete the sale. Of course, because a debit card uses the same Visa network as a Visa credit card would, a debit card still allows you to make transactions in your hometown, online, and around the world with no paper and no hassle.
2- Simple Bill Paying
Everyone is busy today, so the fewer bills you have to remember to pay, the easier your life becomes. A credit card is simple in that it gathers several individual transactions into a single payment, but you still have to remember to make that payment on time. With a debit card, once you’ve paid the transaction, you’ve paid the bill. No statements in the mail, no forgetting to pay on time, and no late fees.
3- Built-In Spending Controls
Maintaining control of your spending is an important financial habit. You must spend within your means if you are going to reach the goals you have for your money. Using a debit card instead of a credit card constrains your spending to only what you can afford, preventing the temptation to overspend that comes with a credit limit that exceeds your financial capacity. By monitoring your debit card balance through its app, you can spend what you need to spend without spending what you don’t have.
4- No Interest, No Fees
When you use a credit card, you’re using a bank’s money. If you don’t pay it all back with the next statement, you pay interest on it. In many cases, you also pay an annual fee for the privilege of holding that credit card, even if you never use it. Debit cards don’t work that way. You’re using your own money, so there are never any interest charges. There are also no fees for holding the card. You use your own money, and you get to keep your own money.
5- No Credit Required
Maybe the biggest advantage of having a debit card instead of a credit card is that you don’t need good credit to get one. Whether you have no credit or bad credit, you’ll struggle to get a credit card. This can make it impossible to do online shopping or bill pay or to do things as simple as renting a hotel room. Because you’re using your own money with a debit card, your credit score doesn’t matter. You can get the convenience of a card with no concerns about your credit.
If you are looking for a financial card, consider the benefits that a debit card will offer to you.
