There are times when a credit card is exactly what you need. For example, it’s helpful in the event of an emergency, such as a costly vehicle repair while away from home. However, don’t overlook the fact that there are many benefits of using a debit card.
Here are five reasons why you may want to consider using your debit card more often:
1. No application
If you have a checking account, you can request a debit card from your bank. You don’t need to fill out an application and wait for an approval. Instead, the only thing you have to do is wait for your card to arrive by mail.
Tip: request a debit card at the time of opening your checking account. This will ensure that you have access to it from day one.
2. No debt
For many consumers, this is the biggest benefit of using a debit card instead of a credit card. You don’t take on any debt with the purchases that you make. The money comes out of your checking account, so there’s nothing to repay.
With this, there’s no concern about racking up debt that you can’t pay back.
3. No annual fee
Not every credit card has an annual fee, but many of them do. Debit cards don’t have an annual fee. It’s that simple.
4. No more carrying cash
There are many potential downsides to carrying cash. For starters, you could easily misplace your money. And when it’s gone, it’s gone. There’s nothing you can do about it.
Secondly, it’s less dangerous to carry a debit card. There’s no concern about someone seeing your cash and attempting to steal it from you.
5. No checks
There may be times when you need to pay with a check, so there’s nothing wrong with having a few of these at your disposal. However, when you have a debit card, you don’t necessarily need checks. Either way, the money you spend comes from the same place: your checking account.
A debit card is not better than a credit card. Just the same, a credit card is not better than a debit card. There is a time and place to use both of these. It’s best to have access to both, as long as you’re comfortable with the way it’ll impact your financial circumstances.
Do you rely heavily on your debit card? Do you make every purchase with your credit card?