Credit and debit cards are a big area of concern lately, and many consumers are unsure which to use, and in which situation to use them. As the economy makes a more concrete upturn, debts are being reduced, and people are slowly climbing their way out of the holes they had previously gotten themselves into. Questions about debt, credit and debit are being asked, and knowledge is power, so here are some suggestions for when to use credit or debit cards, and what you can do to get and stay out of debt.
Since 2000, the amount of charges to debit has almost doubled, and the amount of charges to credit cards has been cut in half. When you use debit, it is the same as using cash. This could be good in some situations, but credit could and should be considered in others. Some situations that may be good for credit purchases instead of using cash are:
A Major Purchase is Being Made
When a major purchase is being made, you may want to consider not only using credit, but by getting a fast cash loan from Check City. However, when you do get a loan from us, be sure to use it only as a short term solution, instead of a long term solution to financial problems.
Because credit card issuers and creditors have more control over situations, and may stop payment, etc, when there are disputes over payment and credit companies are more likely to be able to help you get your money back than when debit cards are used.
When Buying Gas, Checking in at a Hotel, or Renting a Car
When you use a debit card at one of these places "the merchant -- to avoid being caught short -- figures out the maximum you could spend, then puts a hold on your bank account for that amount." More times than not, the amount they put on hold is quite a bit larger than your purchase ends up being, and therefore cannot be accessed, until your account is cleared."
You Want Rewards
Another good time to use credit over debit is when you want rewards. Debit cards are slowly getting reward programs for every dollar spent, but their rewards are minimal in comparison with the rewards credit card companies offer.
You Don't Keep a Vigilant Watch on your Account
If you don't keep a great watch on your accounts, credit card companies usually cover theft and credit fraud better than debit companies.
Check City offers a prepaid debit card that can do wonders, if a debit card is something you need, or if credit cards cause you too many problems. A netspend Prepaid Debit Card can give you all the features of a credit card, without all the hastle.
