How do you pay for your everyday essentials? Most people now prefer the convenience of credit and debit cards, with 34 percent of adults under 50 now making zero cash payments during a typical week.
But these two forms of plastic payments are far from equal. While you may already know about the perks of paying by credit card, such as cashback rewards and points, you may not be aware of the many benefits of debit cards.
So what are some of the advantages of paying with a debit card? Let’s take a look!
1. Avoid the Hassles of Cash
What is a debit card but a cashless way of paying directly from your checking account?
Because of this, you get to avoid the hassle of drawing out cash and carrying a bunch of coins and bills around in your wallet. But, when you use a debit card instead of a credit card, your available balance shows up in your account almost straight away. This allows you to take control of your spending and budget in the same way you would with cash.
2. No Chance of Getting into Debt
With credit cards, it’s easy to spend money you don’t have. Debit cards, though, only allow you to spend whatever’s already in your account. Plus, there’s no chance of forgetting to pay the bill every month and running up even more debts in interest fees and late payments.
And, it’s even possible to get pre-paid debit cards with spending limits or fixed values, as you can learn here, https://bentoforbusiness.com/features/virtual-debit-cards/.
3. Lower Fees
Some checking accounts do come with fees. But you’d have to pay them whether you had a debit card or not. Plus, they’re a lot less than the fees that come with credit cards, including late fees, interest charges, and annual fees.
4. No Application Necessary
For many people, one of the big advantages of debit cards is how accessible they are. Getting approved for a credit card can be tricky if you don’t have a great credit score. In contrast, all you need to secure a debit card is a checking account.
5. Identity Theft Protection
If someone steals cash from your wallet, there’s no way of tracing it or getting it back. But if someone steals your debit card, all you need to do is call your bank to cancel it and stop the thieves from getting away with any of your money.
The Big Benefits of Debit Cards
As this rundown shows, there are a lot of convincing reasons to use a debit card.
For most people, one of the biggest benefits of debit cards is that they offer a kind of middle ground between cash and credit cards. While they allow you to avoid the hassles of cash payments, there’s no chance of spending more money than you can pay back when you use a debit card.
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