When to Use a Credit Card and a Debit Card?
This question seems easy, but actually we are often harmed because we do not care about the usefulness of credit cards or debit cards. Or at least, we are not be able to enjoy the maximum facilities offered by the credit cards company.
For example, some people use credit cards exclusively to pay expenses. They consider this a secure payment. Through some banks, they can collect points or cash back incentives. However, this strategy requires precision and intelligence in use so that debts can be paid in full at the end of the month. In fact, you have to leave so many dollars after deducting the balance of the purchase. If the balance is not sufficient, you can not shop.
In order you can use the maximum facilities from the company and avoid the costs that you do not need, consider when you have to use a debit card and when to use a credit card.
Use a debit card when :
Buying something that is not expensive or can be consumed. You run out of milk for children and a few other household necessities. Instead of wasting time, you stop by the mini home from the office. However, youre not carrying cash. Well, use your debit card as some mini typically apply a minimum purchase value is not so high. Do not use credit cards for purchases that are not too much or for goods that are consumed because you will pay more when you pay late.
Need fast cash. If you suddenly need cash, use your debit card. Withdrawal of cash like this generally will not incur additional costs, both by banks and by the merchant.
Use a credit card when:
Shop online. Either buy an airplane ticket or shopping at Amazon.com, you will be asked to pay via credit card. This is reasonable because credit cards offer greater protection in case of fraud (fraud or embezzlement).
Buying something expensive. Some credit cards offer extra warranty protection over the manufacturing of the products you buy. In addition, some banks credit card providers are also working with the merchant for promotional programs, such as buying fitness equipment at special prices.
Proving credit history. You need to prove credit history when you start using credit cards and stop using it. Do this by buying an item with a credit card, and paid for at the end of the month, or by paying the minimum payment. If your record is good, you have the opportunity increase credit card limit or qualify using the Platinum card from another bank.