‘Credit or Debit Card’ which is better?
Most of us have a question regarding ‘Credit or Debit Card’ as which is better? Credit cards or Debit cards both have their advantages and disadvantages. It entirely depends on the preferences of the user, the way they use it as well as their financial conditioning. However, there is always a room for discussion about their respective relevance and limitations. On one hand a debit card facilitates you to use your money anywhere and anytime, a credit card offers you money in advance and facility to pay it later.
Credit Card vs. Debit Card
While some people advocate the simplicity of debit cards, some opine that credit cards are surely a blessing. Financial analysts believe that proper and systematic usage of credit cards make them equivalent to debit cards in terms of fee and charges. For example, you pay through your credit card and then you deposit the money into it on time, you surely can enjoy all the benefits. The only advantage of credit cards over the other is that you get a bonus time to pay for the money which you have already used. If you don’t have money in your debit card, you can’t use it, which is not the case with credit cards. However, timely payment of credit card bills is mandatory to make the best use of it, failing to which, it would become more of a nuisance than a convenience.
Advantages and Disadvantages of Debit Cards
One of the bigger advantages of debit cards is that they do not have any minimum charges and they are widely accepted in more locations. Moreover, there are some stores who prefer and at times, only allow debit cards. While you can always pay with your credit card, you are more likely to get a place that accepts debit cards. The only disadvantage of debit cards remains well known, that you can’t use it at times of emergency, if you do not have sufficient money in your account. That is where credit cards have an edge over them.
Advantages and Disadvantages of Credit Cards
The numerous advantages of credit cards are well known. So are the complications associated with them. What matters most is how you use a credit card. If you are a planned and self-disciplined person who keeps a check on your financial transactions, credit card is surely a blessing for you. However, if you are a laid-back person, who often forgets to pay bills on time or manage your finances, credit cards can turn out to be a disaster for you with their high rate of interest.
Credit and debit cards, both are offered by banks with the same intention, to enable you to travel cashless and use your money anytime and anywhere. At the end of the day, how you use and manage your money makes all the difference.