Use a debit card instead of a credit card

Cons vs Pros of using a a debt card

Debit cards are useful in a lot of ways. For instance, a payday loan can be deposited into your bank account within hours of your online loan application being approved. It’s your money, spend it how you wish, whether it’s a cash withdrawal, personal check, or debit card. During this recession, many have begun using the latter more and more instead of making credit card purchases. While most are already familiar with the convenience of using plastic to pay for items or services, some may not realize the pros and cons of using a debit card, specifically.

Pros of debit cards

Debit cards can hamper impulse spending. While they cannot completely eliminate this problem, their use does a lot to curtail it. Debit cards, unlike credit cards, will only cover purchases if the money to cover it is in the bank. In short, a debit card is just like cash and that money is automatically debited, or deducted, from your account after each transaction. Credit card spending has limits, and installment payments to pay off charges. A debt card lacks this feature. This means most people will think a bit more before spending more cash than they should and skewing their budget.

Merchants who do not accept personal checks are more inclined to accept a debit card for payment of an item or service. This makes using debit cards as convenient as a credit card at the point of sale. Today, many debit cards are referred to as Visa check cards and bear the Visa logo while others bear the Mastercard logo. This means that wherever MasterCard or Visa is accepted, debit cards with the logo are accepted there as well.

The cons of using a debit card

Unlike what is offered with most major credit cards, cash advances or a line of credit is not offered to debit card holders. Thus, if you need emergency cash or some fast cash for an emergency, or a buffer between paychecks, a debit card doesn’t help there. A person in this situation, even with bad credit, could look into a loan till payday or cash advance from a personal loan company.

Debit cards do not enjoy the protection of federal regulations that credit card customers enjoy. This means that in a dispute over charges, the consumer has little recourse once money has been debited from their account.

Banks that issue debit cards with checking account sometimes assess fees when the cards are used. While this practice is becoming more and more obsolete, consumers are advised to check with their individual bank before using debit cards and accruing possible fees. When inquiring about this, be sure to ask, specifically, about using the card to access cash at another banking institution or ATM machine. Some don’t impose fees on transactions, but it’s common for banks to charge when a card is used at another bank or a private ATM machine.

A debit card that gets lost or stolen can be quite costly, depending on the state you live in and when it goes missing. While very limited protection may be offered, consumers should be aware of their level of protection ahead of time. If someone doesn’t report their card missing within 48 hours of its going missing, it’s possible for the card holder to be left with liability for purchases or withdrawals made with the card. The liability depends on the bank’s policies and state laws governing such limits.

There are advantages to debit cards, like easy and fast access to cash advance or personal loan deposits, the drawbacks can be costly if a person isn’t careful. Overall, however, they offer freedom from high interest rates while offering many of the same conveniences as a credit card. Debit cards do not help build a person's credit, but they also do not present the risk of creating bad credit like some may have a tendency to do while using a credit card.