Categorized | Credit Cards

Why using Debit Card is beneficial

Not many years have passed from the time when people went to go to the bank to get cash from the bank account only after they filled out a withdrawal slip. However, this was solved in the 1990s, when the level of technique was ready to perform ATM, the automated teller machine. This machine gave you a necessary amount of cash when you used a special plastic card linked to your account. The bank issued you this card when you opened an account, so you could easily withdraw cash at any ATM. The first logos of plastic cards were Visa and MasterCard. The clients could use them wherever they were accepted. Also it was possible to cover the spending on purchases directly from the bank account. From that time consumers did not have to carry much cash. Moreover they stopped worrying about their debts accumulated on a credit card due to the option of this new card. It pulled out cash directly from bank account. That was the first example of debit card. And now you benefit with using your debit card. Here we have some differences listed, so you may easily choose the most appropriate variant of using your money:

  1. A credit card allows you to control your budget. If you have a special card for your purchases, it will be easy to check all your bought items according to the monthly report. In such way you can understand where your money is spent and there will be a possibility to create a better budget.
  2. You spend just that amount of money that you have. Comparing with a credit card, a balance of your account is always reducing when you use it. So you will have no possibility to spend more money than you have.
  3. If you need some extra money on urgent purchase, you may always apply for online loan at This will allow you to take definite amount you need and spend only this money. Such financial step will not hurt your budget, but solve your financial emergency.
  4. Despite that both credit and debit cards have the similar level of fraud protection, the security offered by debit card is higher. Unlike a debit card, using which you need to confirm your PIN, you are just required to put your signature when using a credit card. It is not so difficult to guess your signature, especially if it is on the back of a card. But to guess a PIN is much harder. Also today banks provide even more security to debit cards, requiring entering a password when you use them.
  5. With debit card you can spend only the money you have with no making debts. But paying with a credit card you can become short-sighted and make many unnecessary purchases. And you will have to cover all spent cost as well as the special fee.
  6. With your debit card you will never become a debtor. You make no long-term obligations, so it is impossible to put yourself into a debit hole.
  7. You can use a debit card for all financial necessities you may have. And it is free from interest rates. So you can spend your money with no worrying about the repayment date and covering fees.

These are some common beneficial options of a debit card. More information can be found at any bank, so it is up to you to choose the financial opportunity.

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