Working with a debit card is great as you can do everything cashless. However, there’s a great difference between debit and credit cards. They both look equally the same, but their features are way too different to think that this is the same piece of plastic you’re holding in your hands.
Most people that first opt for plastic and an account that will give them the chance for cashless payments choose the debit option. The reason for it is that there’s no commitment and there’s no need for worrying about how you handle your funds.
However, everyone that has ever had the chance to operate both, knows how different it is, and how much better the other option is. Having a credit card offers so many more options and possibilities, that once you switch to it, you’ll never go back to the debit ever again. Read more about this never ending battle here.
Instead of thinking too much about whether it is the perfect solution for you, maybe you should start thinking if it is time to apply for one. The procedure is simple, and if you’re eligible for one, you’ll get it immediately. If you’re still not convinced that you should migrate from a debit to a credit card, then take a look at these reasons and understand why you must do it.
1. Better safety
When you get a credit card, you get a much different safety system for your money on the account. The debit card is different because what you see in the form of balance is what you can spend, but it’s not the same with the credit card.
When you have a debit, the money that someone might steal from you is money that is immediately gone and is extremely hard to get back. The other option is much different. When a hacker breaches the security and steals the funds, you can immediately block the transactions done, and recover what was stolen.
The card issuer will then activate an investigation that will involve the police and the insurance company, and you’ll get your money back. How they will handle the problem later is not your business, but what’s important for you is that it’s not that easy to get robbed.
The debit ones are very hard to be traced when someone steals from them. The insurance companies are not paying any attention to them, and, this is why your money is not safe. If they are not insured, then you’re easily robbed. With the credit card application, you instantly apply for insurance too, which is why this is the safest option out there.
2. A chance to pay with a grace period
With a similar system to the one we described above, the funds that should be paid to a vendor can be held until you want to release them, which is technically called paying with a grace period. This is an option that financial companies provide to their clients when they want to buy something, but they don’t want to release the money immediately, but only after some time.
With it, you get to buy a product or pay for a service with money you don’t have, and even if you do, money that you don’t want to spend right away. What is going to happen is that the finance company will pay for you, and will take the money from your account only when you agree to it.
This is great for those that have no positive balance at the moment but need something bought immediately. They are going to order it, no matter the circumstances, and the bank won’t do any problems to them.
Something like this isn’t possible with a debit card as this piece of plastic is only good as your balance on the account is. If you don’t have enough money, the vendor will simply decline your card and ask for cash instead. If you don’t have the money, the product stays in the store.
3. Better interest rates
When you get a credit card, you’re getting a payment option that allows you to go into debt with a great interest rate. Of course, if we take into consideration that we’re talking about the test av kredittkort and not a classic personal loan.
The interest rate in most credit card deals is around 12%. Depending on many factors like the personal credit score, income size, and many other things, the rate can go up or down, and you’ll pay more or less depending on these factors.
However you turn the tables, you’re getting better treatment through the credit card than anything else because having a debit card and asking for a personal loan might get you a disastrous interest rate that you won’t be able to take.
4. Ability to go deep under the income limit
The best feature of credit cards is the chance to buy whatever you want at a given moment. Let’s say you’re walking down the street and you see that the shoes you’ve been looking at for quite some time are on sale, and it might not take too long before someone snatches them before you.
It doesn’t matter how much they are worth and how much money you have on your account. You can buy them with the credit you have on your card. These funds will be placed on your card, and you’ll pay them back when the income arrives.
What is great here is that the limit is that you can borrow several monthly paychecks and use the money for whatever you want. There’s no need to worry about how much you have, as the card can take more than $10,000 easily. All you need to do is find something you love, and the bank will take care of the rest.
5. Chance to pay anywhere in the world without a problem
When you go into another country, you need money to handle the business you’re there for. A lot of foreign countries won’t accept your currency, and you’ll have to change your currency into the local one. This may be a way bigger problem than it sounds it is.
You’ll need to find an ATM or a bank, but not all of them will be able to give you the local currency when you give them the debit card you have. On the other hand, when hand over a credit card, they’ll easily provide the money you want, and even more than you have on the balance.
If you find yourself in an emergency, you should know that you’ll always be safe wherever you go. You just need to walk into any bank you see, and they’ll give you cash that works wherever you go. This is why credit cards are the best payment system there is.
These are some of the best reasons to know why a debit card is not as worthy as a credit card. It provides many more features, and you’ll have more benefits from having it.
If you feel like you want a better solution than having an account holding your money and charging for maintaining it, then the credit card is what you’re looking for.