Debit Cards vs Credit Cards

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<h1>Debit Cards vs Credit Cards</h1><strong> Author: <a href='http://www.articleseen.com/profile_Mr William Hauselberg.aspx'>Mr William Hauselberg</a></strong><br /><p>Whether you are buying groceries or new home electronics, you probably find it easier and more convenient to pay with the swipe of a debit card or credit card rather than carrying and using cash. Though there are some similarities, there are also some very important differences between a debit card vs credit card. Credit Cards Credit cards give you the ability to buy now and pay later. They work as an unsecured loan, and you are spending money that isn’t yours. Credit cards often offer a number of member-exclusive benefits every time the card is used. As a card member, you can earn cash back or points that can eventually be used toward airline miles or other gifts and incentives. Many people use credit to pay for more expensive items they might not otherwise be able to afford. Instead of trying to come up with a large lump sum of cash, shopping on credit gives you the opportunity to purchase big-ticket items and make regular monthly payments to pay off that purchase. But buying things you can’t afford with the intention of paying them off later can come with its fair share of problems. Though you may have every intention of paying your card in full or making more than the minimum monthly payment each month, it can be very easy to fall into the credit card debt trap of only paying the minimum. By only paying the minimum on an unsecured credit card, you can keep more money in your pocket each month, but your interest rate – and your balance – can continue to grow, especially if you continue to make purchases on the card while still only paying the minimum each month. It is important to remember that credit cards don’t have to be dangerous. In fact, if used properly, they can be very useful in not only making purchases, but by building a strong credit history as well. The stronger your credit score and credit history, the more creditworthy you become. Creditworthiness is crucial in obtaining future credit, including car loans and mortgages. Not only will you be more likely to be approved, you will also be eligible for the best possible interest rates. Debit Cards Debit cards can be used anywhere credit cards are accepted. In this day and age, this means they can be used just about everywhere. Unlike the buy now pay later system of a credit card, debit cards use your own money. They are linked to your bank account, and every time you make a purchase, the money is pulled directly from your account. Though you won’t necessarily be able to make a big-ticket purchase, especially if your bank account is dwindling, debit cards are useful in helping you make more responsible spending decisions. Rather than spending money you don’t have or can’t pay back, debit cards can help keep your spending within your current means and current budget, as long as you don’t go overboard.</p><strong>About the Author:</strong><br />The author has an immense knowledge on <a rel="nofollow" href="http://www.advantageccs.org/dmp.html">credit card debt</a>. Know more about <a rel="nofollow" href="http://www.advantageccs.org/debit_vs_credit_card.html">debit card vs credit card</a> related info in his website.<p> Article Source: <a href='http://www.articleseen.com/Article_Debit-Cards-vs-Credit-Cards_212892.aspx'> http://www.articleseen.com/Article_Debit Cards vs Credit Cards_212892.aspx</a></p>

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Keywords : debit card vs credit card, credit card debt,

Category : Finance : Finance