Credit and debit cards have some disadvantages. The former usually have better protection against fraud, but they also allow the user to get into debt easily. Debit cards, meanwhile, will never give you the opportunity to get into debt because they use only the money available in your bank account. However, this also means that anyone who accesses your card or debit card number can use it to withdraw money directly from your bank account.
Debit card security is better than in the past, and the new payment options used on your mobile phone can also contribute to security. Yet in certain circumstances, you will find it safer to use the credit card to complete your purchases.
The most important things first!
Credit card problems come in two different forms:
- The interest charges you will pay if you keep a monthly balance.
- Various fees billed annually or intermittently by the card company itself or the issuing bank.
The first problem is easily solved by paying your entire balance each month. In this case, the interest charges do not worry you anymore. It also means that your credit card is no longer used to borrow. Instead, apply for a personal loan online for a fixed amount, you will find it easier to manage than a credit card debt.
Second, find a card and check all the fees associated with it before you sign up. This also includes annual charges.
When do you find the credit card safer?
You make online purchases, use a credit card. You will also need to use it at any automated payment console (such as a gas station where you pay at the gas pump). Why ? Because online or automated transactions can easily steal personal information. The credit card does not require you to pay your bill immediately. You can report fraud before you pay the balance of your card.
What do you think of debit cards?
Easier to manage, the debit card allows you to pay your payments without delay. However, you must use online management tools to verify your account in order to:
- Know your balance at all times.
- Check if fraudulent charges appear.
If you can not find it difficult to check your transactions online, the debit card is right for you. In fact, if you are familiar with using personal loans online when you want to borrow, you may not need a credit card.
You must also know the fees associated with debit cards. You will find that you are charged a transaction fee at ATMs and overdraft fees. Ask about them, but if you manage your account correctly, you should not worry about overdrafts.
If you opt for a prepaid debit card, you should also know the monthly fee and choose a card that will allow you to easily check your balance online or over the phone.