Credit vs. Debit Cards

Credit vs. Debit Card Videos

This is a very important topic you must discuss when deciding between a credit card and debit card. Credit or debit depends on what your interests are; credit cards benefits the fact that card use results in payments each month, while debit cards benefits each transaction as a withdrawal directly from your account. For consumer’s credit cards are better for company reimbursements as well as better protection benefits. Credit Cards benefit consumers with no fraud policies usually you will only be liable for up to $50, while debit cards can offer the same benefits but you must notify your bank quickly. Debit cards offer direct exposure to your banking account, therefore a good practice is to create a separate bank account that you keep small amounts in for your debit card, that way if someone tried to create fraud they cannot empty your life savings. Also make sure your bank has day limits on the amount of cash you can withdraw a day for even deeper credit protection Debit cards benefits consumers and students as they allow ATM use; the main difference in a debit card is you draw money directly from your checking account when you make a purchase. Apply for credit before obtaining a credit card because, you “borrow” small amounts of money, and if you do not pay the money back, interest will be charged. Types of credit will determine credit or debit cards. Better credit and when you have a credit card will allow you to make better purchases as well as credit card loans. Debit cards are important as they force you to limit your spending, convenient, and offer rewards programs. Each type of card has a use and is a good tool for the consumer, you just have to make sure that you have safeguards in place to protect you credit cards and your debit cards. Watch our Credit vs. Debit Card Videos to learn more.