It's a world of Card nowadays. Hardly people carry cash with them, majority of the times only cards are used. Personally, even I prefer to use cards, and keep less cash with me. Because the more cash I have the more unnecessary expenditure I make. But in India still not everywhere cards are used, many small-time businesses run on cash. So, cash is required to be kept handy.
Between the Debit Card and Credit card personally my choice is to use more of Credit card. There are pros and cons of having a Credit card. One major drawback is sometimes you end up spending money more than what you have and this creates pressure later on paying up. If you use only Debit card, then you know what you have and how much you need to spend.
The reason why I use a credit card is because I get a credit period time to make the payment and during this time period, I can earn some additional interest on the money that is in my savings account. The other benefit is the reward points on the credit card use. Later these reward points redeem for shopping vouchers. So, it's like a gift that I get on the spending that I do.
One thing I am very cautious about while using my credit card is, to never over utilize it. Means, I never use my credit card for an amount more than what I can afford to spend. Every month I make my expense sheet in advance and then budget it against the income I have. From that then I decide which payments can be done by credit card and later I can pay that money. My system is just like using a debit card but the payment happens at a little later stage and not immediate. This way I can get some benefits from the reward points and a little interest from the savings account. Though the second one is very negligible.
Since the last 3 years I was accumulating my reward points on my credit card and last year on my Son's birthday I gifted him a Mac Pro where almost 70% of the cost I paid from my reward points. That's a very good deal, right. From all the spending that I did in the 3 years I could manage to pay 70% of the laptop cost. It is a additional benefit for me. Within our family we have one credit card and we all use the same one for all the expenses with the same concept. So that all points get credited on one card and can be redeemed when needed.
The Golden rule is never overspent than what we have. That way we do not end up in any trouble of payment, and never default a payment and get any additional fees charged. Because if the payment gets defaulted then the cost of late payment is very high. If one does not have control over finances, then it's best not to use the Credit card and only keep up with Debit card. Otherwise using the Credit card can be beneficial in some ways.
What do you prefer. Using your Debit or Credit Card?
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After working at a bank, I would never recommend anyone use a debit card. So many people would come into my branch in tears because their debit card was compromised/stolen and their entire checking account balance was wiped out or in the negative. The bank fraud investigations took weeks and in the meantime, they had no money to pay rent, gas, or groceries. It was terribly sad to see it happen over and over again.
With a credit card, if it gets compromised or stolen, nothing leaves your checking account while the credit card company investigates the fraud!
!PIZZA
Too many card frauds are happening. It is sad when people loose their fortunes. Banks are providing many facilities these days to minimise loses like setting limits on your cards. I set my card limits on minimal values,change them when I need to use for more. I am sure you must have come through so many such cases being a banker. So many scams that it is really scary at times.
Nowadays RFID card wallet is also available which is very good to protect your card for contactless swpies
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I prefer to use credit card because I can delay payment for one month.
Same here, I too use it with the sane intention
Hi, nice article. I use them both, but I prefer the debet card, because I don't have to pay the bank for any credits. When it is necessary I use a credit card, but I pay the credit directly back to the bank. Because, the banks over here are legal thieves. Though, that's my opinion! :-) !lol
I keep both but do not carry them e everywhere. Depends on the need I carry them when I go out and always set limits to minimalize any loss
The purpose why some of my friends have credit cards is they look after the reward system. They will just save the reward points and redeem it once they have enough reward points to pay for the things they wanted to purchase.
As long as the credit card user knows how to use it properly then using a credit card is an advantage.
I too use it for the same reason. I pay almost everything by my credit card and accumulate points. But I make sureI spend only that much that I have in my account to pay. Last year I bought a laptop where I could pay 75% of the anount on my accumulated points of 4 years. That was definitely a deal.
I have never owned a Debit Card xD
Thats a very good practice but then nowadays it becomes inconvenient to withdraw money from bank. Using debit card at ATM makes it convenient
Ohh, I never withdraw money from the bank or an atm.
We can use our card here everywhere
Spot on I prefer debit but use a credit card online for the protection it gives you. It also does wonders for your credit rating! As long as you pay the full amount or use the interest free rewards you are laughing 🙏🏽
Thats the point, keep your cards safe and pay on time. That way you make a good use of cards
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STOPCredit Card, because it not only facilitate us to delay payment but give rewards also. Credit Cards are curse for those who do not settle the payment in time, otherwise it is always profitable.