Living in a society where consumerism is ruling can be very burdensome on your wallet. There is a large number of ostentatious goods no matter where you go. These flamboyant and swaggering goods follow you to the point where you can’t do anything but open up your wallet and take them home. Most people these days use credit cards as the mode of payment. The banks and credit card companies review credit card deals ever so often that makes paying for the stuff seem easier. But beware this extravagant habit can lead to bankruptcy.
The argument is that whether debit cards are superior to credit cards. Following are some pros and cons of debit card that would convince you that debit cards are better for your wallet than credit cards.
What are debit cards?
Debit cards are payment cards that allow instant withdrawal of cash directly from the user’s bank account.
What are credit cards?
Credit cards are also payment cards that allow the user to purchase products and goods on credit usually in exchange for a monthly fee.
The most obvious advantage is that it is safer than carrying cash. There are chances that you can lose your money or a pickpocket can work his magic on your pockets. This is applied to credit and debit cards both.
2. Worldwide Functionality
Debit cards can be used all around the world due to MasterCard and Visa. The amount of money is immediately transferred to the merchant at the point of sale. But because credit cards are fundamentally a loan, not all merchants around the world will accept it. Moreover, the credit card issuers have to be a bit more cautious while making their policies that may or may not be acceptable in places other than your native country.
3. College students
They are widely popular among college students because debit cards can be issued to anyone above 18 years of age. Credit cards, on the other hand, are only issued to people who have a clean credit history and can afford to pay their credits on time.
Debit card users don’t have to worry about paying a monthly credit card bill or going into debt because they are using the money they already have. While credit card users are purchasing things on loan and sometimes they might not realize that they have to pay back what they are borrowing eventually.
Sometimes, debit card providers can have technical issues so the money may not be available when you need it. And if a debit card provider gives you an insecure website, there are also chances of a hacking and you may end up losing money. But the chances of this happening are close to none. The companies are aware of these risks and ensure that they provide the best possible service to their customers.
The reason why credit cards are so popular is that they allow a large range of purchase at the moment without having to worry about your budget. This can lead to a bad habit of buying things you don’t need and make a person irresponsible. Consequently, it can lead to financial ruin.