Debit v Credit Cards Determining What’s better

This is to do with the personal choice of the end-user [being you]. With credit card debt running into millions, there are many people who feel that the best way to go – when it comes to keeping a card – is by using a debit card.  Yet if you are one of those people who always have control of your money then a credit card is the card for you. If you can control what you spend, and pay your credit card bill on or before the due date, then getting into credit card debt will never be a problem.

You are the type of person that banks and credit card companies love to have as their customers, as you will always be relied upon to pay your bills on time. They will even offer you, from time to time, a higher cash limit on your card, because of your custom.  Of course, again, if you can control your money and can handle a higher cash limit on your card, this will not be a problem to you.  However there are millions who struggle to pay off credit card bills every year. and a credit card in their hands can become like a lethal weapon.

For them applying for a debit card would be the best course of action to take.  This is simply because a debit card will give you more control over how you spend and what you spend it on.  Furthermore, with a debit card, you can only spend the amount that is actually in your bank [because the debit card is directly linked to your bank account].

So, for instance, if you have savings of an x amount of money in your bank account, when you apply for a debit card, this x amount will be replicated on your card. Therefore,when you use your debit card in stores, you can only spend the amount which is on your card. You are not allowed to go over that amount.

Once your money is spent you have to place more money into your bank account.  However, there are other types of debit cards in which you do not have to apply to the bank. These debit cards are routinely advertised in newspapers and magazines.  They indeed, act like pre-payment cards [ and really that is what they basically are]. 

When you apply for this type of debit card, once it arrives in the post there is only a standard fee that you have to pay, [this is for the card itself]. You can pay this at the time of applying, or you can pay the standard fee, when you activate your card with money [paying the standard fee plus the amount you want to place on your card].

The standard fee for the card is paid every month, and again, what is left is the amount [cash limit] you have charged your card with. Take your pre-paid card to any store displaying the pre-paid sign, hand over your card to the cashier and tell them how much you want on the card. Hand your money over to the cashier and they will then charge your card through their terminal. Your pre-paid card is then charged with the amount you have paid. Once this amount has run out, you cannot use the card again, unless you charge it again.

Pre-paid cards and indeed debit cards have become very popular with thousands of people who find that they are more in control of their spending, then they would be with credit cards.  But again, it is all down to personal choice. If you feel that you can keep your spending under control you might not want a certain cash limit on your card. A credit card, therefore, would be the best option for you.

However, if you do not trust yourself when it comes to credit cards, but would rather have a certain amount of money that you can place on your card instead, then a  debit card would be the one for you. Whether you apply for your debit card through your bank, or through an independent company, you can always be sure that you will be in control. One more thing about debit cards is the fact they do not carry with them any APR [annual percentage rate]. Unlike credit cards where you have to pay an APR if you are late with your payments… with a debit card, this is not the case.