6 Reasons Why Using Credit Card is Better Than Debit Card
There are many considerations when it comes to making a choice between a credit card and a debit card for making a transaction. Credit cards offer many perks that debit cards do not. These benefits can be redeemed across traveling or shopping. Overall, as long as you are a responsible spender, a credit card is a better payment mode as compared to a debit card.
Recently, the most popular way to get rewarded for the money you spend is through the rewards programs offered by credit cards. There is a fixed percentage of rewards that you can avail depending on your credit card provider. These reward points tend to accumulate faster than you can imagine. You can redeem these points across exciting deals on hotel stays, discounted air flights, in the form of cashback, and much more depending on your provider.
If you are planning to make an expensive or high-tech purchase, then purchase protection is a good reason as to why you should make the payment using your credit card. Depending on the card provider, cards have different policies that generally protect your purchases against theft, loss or damage. This acts as insurance for your purchase at no additional cost.
An extended warranty cover usually duplicates the warranty period offered by the original manufacturer for a period of up to one year. If you are considering to purchase expensive items such as appliances, this is a good reason as to why you should pay with your credit card. You are not required to pay any additional costs for such services.
Ever purchased an item only to find it at a lower price elsewhere – frustrating, isn’t it? Price protection is a service offered by some of the best credit cards which may not be offered by your debit card. This allows you to recoup the difference in the price you initially paid and the lower new price that is being advertised.
When it comes to the benefits, perks and cost-saving aspects, your debit card cannot match your credit card. Not only do credit cards offer insurance type benefits like trip cancellation and lost luggage protection, but they also help you to save money by additional perks such as getting complimentary access to airport lounges or avoiding paying a baggage fee.
Build Your Credit
Just holding a credit card is not enough to have a good credit score, and using a debit card does not contribute towards it. However, if you use your credit card and make timely repayments of your outstanding dues, it shows the lenders that you can handle your debts responsibly, which helps in increasing your credit score. Not only does a good credit score make qualify for the best credit cards, but it also helps in giving you access to the best benefits. A good credit score also helps you in getting good rates if you plan to opt for any insurance policy.
The Bottom Line
Although, debit cards and credit cards look similar, have the same number of digits, expiration date and security code, the perks they offer to the consumer are very different. A lot of these perks can be beneficial while making expensive purchases. But even on daily spending credit cards offer perks that surpass the perks offered by debit cards. A lot of people opt for payments using their credit cards for even the smallest things in order to access the rewards offered. The sole advantage a debit card has over a credit card is that the spending is controlled. However, if you are someone who is good with budget spending and repayment of the debt, then a credit card is the ideal option for your spending.