Why You Should Use Credit Cards Instead of Debit Cards – Smarter Finance Journal

Why You Should Use Credit Cards Instead of Debit Cards

credvsdebtHave you ever asked yourself the question, “Should I use my debit or credit card?” Most of us have.

Well, Smarter Finance Journal has your answer. If you’ve opted for debit in the past, you might want to change your mind. Along with all the rewards you can earn by using a credit card, they are also that much safer to use when protecting against fraud.

Jeffrey Weber, the Editor in Chief for SmarterBalanceTransfers.com and CardWisdom.com, explains: “You should essentially render your debit card useless if you use your credit card in the right way. By paying off your credit balance in full every month, you can earn rewards and boost your credit score without ever swiping your debit card.”

The only exception to that rule is if you are working your way out of credit card debt or are too tempted to overspend on your credit card. If you don’t pay off your credit statement on a monthly basis and still use your debit card too, then you should take Weber’s advice and read about the five things you should never use your debit card for:

  1. Don’t buy anything online with your debit card. It’s easier to deal with a credit card if your number is compromised online. If your debit card number is taken they can wipe out your access for cash
  2. Use a credit card when paying for gas. Using debt can sometimes place a temporary hold from $50-$100 on your account. If you have a low balance this will help prevent overdraft fees.
  3. Hotels are another place that put temporary holds on your debit card. Plus a lot of credit cards give you double points for travel.
  4. It’s best to use your credit cards for large purchases. Visa, Mastercard and AmEx offer various purchase protections for users. This is a big help if you get a defective item. If disputing a defective item with a debit card it could possibly take a long time to get your money credited back.
  5. Shady, sketchy or unknown areas are a great time to whip out your credit card. Webber said it’s harder to rectify fraud when you use your debit card, you will be protected from the get-go if you swipe credit in these situations.

Source: Huffington Post

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