Why You Should Be Using Credit Cards Over Debit Cards
When it comes to making purchases, many people default to using their debit card. But did you know there are several advantages to using a credit card instead? Here are just a few of them.
Enjoy Greater Security
Credit cards offer better security than debit cards. When you use a debit card, the funds are withdrawn directly from your bank account. This means that if your card is stolen, you could be out of luck until the issue is resolved. On the other hand, credit cards offer much greater protection against fraud. If your card is stolen, you can simply contact the credit card company to dispute the charges and the funds in your bank account won’t be affected. Plus, many credit cards offer additional security features such as fraud alerts and purchase protection.
Many credit cards offer rewards programs where you can earn points for each dollar you spend. These points can then be redeemed for a variety of rewards such as cash back or travel rewards. Depending on the card, you may earn extra points for purchases in key categories, like travel, dining or grocery purchases. Additionally, having a high credit score shows you’re a worthy borrower and lets you finance consumer purchases. This means that you can charge purchases to your credit card and pay them off later without incurring any interest charges while still earning points.
The most important reason to use a credit card is to build a credit history. While using a debit card won’t have any effect on your credit score, using a credit card responsibly can help you establish good credit. This is because credit card companies report your payment history and credit utilization to the credit bureaus. By making on-time payments and keeping your credit utilization low, you can improve your credit score over time. Your credit score becomes a critical tool if you plan on applying for other forms of credit such as a mortgage.
Credit cards offer greater security, the ability to earn points, and the opportunity to build credit. While it is important to use credit cards responsibly and avoid accruing debt, there are many benefits to using them as a payment method over your debit card. So, the next time you make a purchase, consider taking out your credit card instead.
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