A table, a chair, a bowl of fruit and a violin; what else does a man need to be happy? - Albert Einstein
Many people wonder if they should be using credit cards or debit cards. The truth is that each of these cards has advantages and disadvantages. Make sure you learn about them to optimize the results you get from your banking and budgeting.
The most prominent advantage of credit cards is that you do not need to have the money available at a given time to pay for a purchase. You will usually have a minimum of 30 days to cover the purchase. Even at that point, based on your card’s terms, you may not have to pay the entire balance.
The main advantage of debit cards is that you can rest assured that you have the money to pay for purchases in your account. You do not need to have concerns about future payments or finance charges. Using a debit card is like using cash without having to carry cash with you.
When it comes to disadvantages, credit cards may make you end up with huge balances, as they are very easy to use. Therefore, credit card users need to be on top of their banking and budgeting status. Further, even if you are required to make a partial payment, it can be very difficult to cover the amount. With finance charges finding their way into the whole scheme of things, people with credit cards may face significant debts.
On the other hand, the main disadvantage of a debit card is that you cannot use it unless you have money in your account. According to some people, a debit card does not have any conveniences than acting as cash.