Five Reasons Why Debit Cards Are Better Than Credit Cards
April 30th, 2011 | Author: weissheiss
So you’re stuck as to which plastic you favor best: credit card or debit card. There are undoubtedly intrinsic benefits to both: one has excellent fraud protection, while the other prevents you from spiraling into too much debt. Given that both of these types of cards have their own specific benefits, does it really matter which one you prefer to carry?
Surprisingly, yes. Read on to find out five reasons why prepaid debit cards are far superior to credit cards!
1. Debit Cards Have No Interest Rates.
Depending on the consumer’s credit history, credit cards can have an interest rate from 5% to as high as 24% – and that’s exactly why debit cards are superior to credit cards. For every purchase you make with a credit card, it’s like taking out a loan with a very high interest rate. You wouldn’t accept a mortgage with an interest rate of 18%, would you? Debit cards have no interest rates; therefore, you won’t be throwing your money away should you ever carry a balance.
2. You’re Likely To Be More Responsible.
For some consumers, credit cards make it all too easy to fall into debt, as it’s not regarded as “real” money. Since prepaid debit cards are loaded with your own available funds, you’re more apt to keep spending under control since it’s your actual bank account!
3. You Can Build Your Credit History.
Of course, credit cards allow you to build a credit history – but with interest rates as high as they are today, why risk it? You can boost your score just as easily as using a debit card, without sacrificing your money to criminal interest fees!
4. They’re More Secure Than Credit Cards.
Sounds a bit backwards, but credit cards can be fraudulently used much easier than debit cards. Whenever you make an offline transaction with your prepaid debit card, you’re required to enter your pin number, thus ensuring that the person using it is definitely you. With a credit card, some merchants don’t even ask to see a picture ID, making it either for identity thieves to get away with it – now that’s scary!
5. You Can Avoid Serious Debt.
This is different from number two in that credit cards make it far too easy to fall into serious debt, and in the most extreme cases, even bankruptcy. Credit card debt has easily ruined many people lives – now when’s the last time you heard about debit cards having this effect?
Posted in Debit Card Protection | 
Tags: Credit Cards, High Risk, Merchants, Mortgage, Pin Number, Prepaid Cards, Real Money, Score