Best 5 Reasons To Use A Credit Card Instead Of Debit This Festive Season

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Credit and debit card are both plastic money whereby the users pay to the dealers directly from their accounts and thus need not carry much hard cash which is extremely risky. The modes of payment in these two cards are very different. Whenever we do some transactions using the debit card, the money is directly debited from the account to the source accounts. On the contrary when a credit card is swiped the amount is borrowed from the banking institution whose credit card it is and paid to the dealer. Later on you need to pay back to the credit card issuing company.

Though many users are of the opinion that debit is much better in comparison to the debit card, here are five important reasons why you should depend on the credit card instead of the debit card.

You get a good credit score


When we swipe a credit card for any transaction, we need to clear off the credit card bill at the end of month without default. In this way you can increase your credit points by responsibly paying off the bills in time. This record of your spending habits is extremely important when you apply for a loan or mortgage in the future course of time. The loan issuing company will go through your credit card paying records to see whether you are responsible when it comes to giving back the borrowed money. But you do not get such facilities with debit card usage.

Credit card comes with attractive rewards


All credit cards come with alluring reward schemes whereby you get to earn points whenever the credit card is swiped. These points can be redeemed at a later stage for purchasing any products or services. There are many specialized travel credit card where you earn miles on every transactions done through it and redeem it later on for buying air tickets or for any other services. Many other such specialized credit cards are also present that give you the opportunity to earn money while spending.

Protection against possible identity theft


Since the debit card is directly linked with the bank account, in case of debit card theft, the thief will be able to trace back to your bank account immediately and use up all the funds. On the contrary in case of credit card the liability of the users is limited. The users need to inform the credit card issuing company about the theft and thereafter the card will be blocked. The card holders are entitled to a lot of protections and rewards like if you do not inform the credit card issuing company immediately, then you are liable to minimum USD 500$ money back guarantee.

Zero percent interest


For every transaction made through a credit card, zero percent interest is charged for a certain period of time like a month or the next twenty days. But when you use a debit for a particular transaction you loose that money and do not earn any interest on it for a certain period of time. But to get this benefit you must clear off the earlier payments at first.

Give you more opportunity to control the money


In all the transactions made through credit card, the card holder has much more leverage in case of any dispute. Since the money has not yet reached to the dealer, you can still make some amendments in case of any fraudulence . But this option is unavailable in case of debit card payments as the amount is directly debited from the account.

These are the five most important reasons because of which you should use a credit card instead of a debit card. Use them for earning rather than loosing money while conducting any transactions.

The above article is written by Jenni who is associated with Page Once. She excels in writing articles related to personal finance, online payments, credit related etc. She refers sears payment online  for all the web transactions.

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