Should You Spend With Debit Or Credit Cards?

Historically, the evolution of mankind has been characterized by the epochs of time created by the items that had made a deep impact in their day-to-day lives. Thus, we have the Stone Age, followed by the Bronze Age, and so on. The 21st century can be rightly declared as the Age Of Plastic. This deceptively innocuous looking substance has pervaded all facets of our lives, and nowhere else has it been more powerful than in our very own wallets! We have bid adieu to the jingle of coins and the soft rustle of cash. Today, plastic money has become the norm, with people having either or both credit cards and debit cards bearing their name.

Debit Card vs. Credit Card- Which One’s The Best?

When it comes to plastic money, many people still tend to get confused when faced with the daunting prospect of choosing the card that’s best suited for their needs.

Both, credit and debit cards eliminate the need for cash and can be used to make convenient payments- be it for shopping, settling bills, transferring funds, etc.

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 Let’s take a quick look at both modes of payment with the sole objective of figuring out which one, at the end of the day, brings the greatest advantage to the user.

What is a Debit Card?

Debit cards are  simply another way of withdrawing funds that are already present in your bank account. Account holders are usually issued debit cards and checkbooks together, so as to make easy and fast withdrawals and payments.

How its works?

Debit cards can be used to withdraw money from ATMs. So, debit card user need to create a numeric-based PIN code that will enable them to withdraw cash from the ATM. This same PIN number is also used at stores that have card-swiping machines to make cashless payments. Just input the PIN and Voila! You have just debited your account!

What is a Credit Card?

A Credit card works quite differently from the debit card. Here, one gets to borrow funds, enabling them to add to their line of credit. Payments made via credit cards tend to get high rates of interest levied on them if the amount is not settled within the prescribed period of time.

How it works?

Credit card users make payments with their card. These payments have to be within the card’s limit. It is worth noting that there are various types of credit cards with different limits.The user needs to settle the money borrowed within a set time frame, usually a month, else interest will be charged on the borrowed amount.

Now that we have looked at the basic difference between the two cards, the question still remains- Is using credit card instead of debit a smarter mode of payment?

The answer– It all depends on the transaction you intend to make.

Debit cards are safer to carry around than money, especially in unsafe neighborhoods. Also, with debit cards, you are only going to make the purchases that you can afford.

However, by using credit cards, you can buy stuff that are perhaps on sale, but still presently unaffordable. You can make the payments at a later date. In addition, many say this feature ensures a level of protection against fraud and enables faster refunds-both of which are not possible with the use of debit cards. However, make sure to pay off the dues before the period for repayment elapses, so as to avoid hefty interest rates.

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