Debit Card Advantages

Category: Finance, Credit.

With the rise in popularity of credit cards and debit cards, over 40% of offline transactions are now conducted using plastic over cash.

For most, the answer is far from simple, and comes as a result of a number of factors, such as the size of a transaction, the transaction type and your current liquidity. With this set to rise to over 2/ 3 thirds by 2012, the question remains- should I be using a credit card or debit card? With so much to consider, we have prepared this guide to ensure that you are aware of the factors that influence the fundamental choice- debit card v credit card. Should you complete a purchase with your credit card, your credit card company will provide a dispute resolution service should things go wrong. Credit Cards Advantages. They will actually refund you in the interim until they are able to find evidence to suggest either party was correct. If you are unable to finance a purchase, but will have the capital in around 1- 8 weeks, then a credit card could be for you, if you are aware of the costs that you will incur for borrowing.

Strapped for cash? Credit Card Disadvantages. To avoid this, you must only spend with a credit card, what you know that you can afford. The inherent disadvantage in credit cards is that it is all too easy to get yourself in a mountain of debt. Credit card theft and issues relating to this are on the rise. Debit Card Advantages.

Although you may be covered for a large amount of the transaction, this can cause worry and stress to credit card users. You can only spend money you have. Debit Card Disadvantages. With a debit card, you will not be able to spend money that is not available in your bank account, this means that you will never be in red, and therefore the risk of debt spiraling out of control, is less of a worry to you. Should you complete a purchase online and things go wrong, you will have nowhere to go apart from the merchant. If you do not have the cash upfront for a purchase then you may find yourself unable to finance a transaction. That is why it is strongly recommended that a credit card is used for large scale, online purchases.

If you had a credit card then you would be able to do this.

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Less than 6% of the population in the United States can brag about having FICO credit scores above 80 It s an elite club.