Debit Cards vs. Credit Cards: Which is better?
With the current controversy over big banks’ debit card usage fees, consumers are starting to question how honest their banks are. As fees continue to rise, are there still incentives for even using a debit card? Would it make more sense to avoid the fees and only use a credit card? Here is some information about debit cards in order to help you make that decision:
Debit card fees are far from gone. Although consumers have been successful in fighting debit card usage fees, overdraft fees and ATM fees are continuing to increase.
Debit-card rewards are dwindling. Reward programs, such as cash back and airline miles are becoming less common.
Credit cards can be a better deal than debit cards. For those who pay off their credit card balance each month there’s little reason to use debit cards. Only using a credit card would avoid interest rate charges and late fees.
Your bank account is vulnerable to thieves. If your debit card gets stolen, the thief could wipe out your entire bank account and your savings if they’re linked together.
We mean nothing to credit scores. Using a debit card will do nothing to help establish a customer’s credit history or rebuild their credit score.
For more information on debit cards, visit Smart Money.
*To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or tax related matter.