The main feature of a debit card or a credit cards are to facilitate payments. Many individuals do not bother to check, which one to use and when. There are lots of perks and benefits by using the right card at the right time.
The basic difference between debit card is that the amount is debited immediately from your account. On the other hand in a credit card, the amount is made payable on the stipulated date.
When to use a credit card?
It is best to use credit cards if you are able to pay the payments on time after the grace period of 45 days. If you have a right credit card which suits your lifestyle you tend to benefit most of the time when you swipe your card.
Credit cards users can reap more benefits on discounts, travel points and many other perks by using rewards cards.
To make higher amount purchases one can make use of credit cards where they will be entitled to reward points and 45 days grace period for making payments.
Think twice when you are buying products on EMI as it will add up to the total billing amount. However, the best is to go for Zero interest EMI option if available.
In case of emergency, the credit card could be more useful as you may not have money in your bank account to use your debit card.
When not to go for credit cards?
If you are a shopaholic it is better not to use credit cards as it will encourage you for reckless shopping with interesting offers and discounts.
Using credit cards for withdrawing money can be a very bad decision as you will have to pay a huge amount as interest as a fee.
Also, if you neglect your bill payments you may have to spend more on late payment charges and also your credit score can also get hurt.
When to go for a debit card?
The debit card helps you spend accordingly and one can keep an eye on the spending as the amount gets deducted immediately after swipe.
Debit cards do have reward points, but not all. They are also not too rewarding.
Debit cards are mostly used to withdraw money as the fee is not charged for few transactions, and the charge is also negligible.