If you are unsure about whether to use a debit card or a credit card, you should read this article to find out the good and bad points about each card. The card you choose to use should be based on your lifestyle and finances.
The debate continues about getting a debit card or credit card, and while each have their own set of benefits, they both have their own downfalls as well
Debit card benefits
Debit cards are secure and convenient and when you use them you don’t run the risk of getting into debt. You are only able to spend the money that you have in your banking account, which makes a debit card much like plastic cash.
If you have a strict budget you are trying to adhere to than a debit card would be a preferred choice over a credit card. One good card to help you achieve this is the St. George Visa Debit card. You will be able to monitor all of your transactions online so that you can have strict control over where your money is being spent.
Would you consider the fees associated with debit cards during a normal year of use it will still probably be less than the annual fee you would have to pay for a credit card. You can use them at ATMs to get cash for a very low fee, whereas cash advances with a credit card are heavily charged.
Credit card benefits
The main benefit of a credit card is the ability to spend money that you do not have. Even if you are completely broke you can still use your credit card as long as you have not gone over your credit limit. This can be helpful at times, especially when emergencies arise or you just need a little help getting through to the next paycheck. You can also use the card to make a large purchase that you wouldn’t be able to do in the very near future and pay it off over time.
You can also earn rewards points with credit cards unlike debit cards. One such rewards card is the David Jones American Express card. This card allows you to earn points that you can use to purchase goods at David Jones.
When comparing credit and debit cards you really need to consider what you will be using the debit card for and what your current financial situation looks like right now. There is no right or wrong answer as far as credit and debit cards go; it is a personal choice.
