Debit Card vs. Credit Card which is better

gurpreetsingh

Par 100 posts (V.I.P)
The advantages of a credit card are that you don't have to have the money available at that time to pay for your purchase. You will usually have at least 30 days to pay for the item and even then, based on the terms of your card, may not even have to pay the whole balance.

The disadvantages of a credit card is that it becomes way too easy to use them and run up large balances. Then when it comes time to even pay partial payments it can be very difficult to make those payments. Add to that the finance charges and people with credit cards can run up large debts that they sometimes never recover from.

The advantages of a debit card is that you know you have the money in your account to pay for the item and you don't have to worry about future bills or finance charges. It's as good as cash without having to carry cash around with you.

The disadvantages of a debit card is that if you don't have the money in your debit card account then you can't use it. In a sense it's pretty much the same as if you don't have cash on you.

Many people feel that a debit card is just a compact cash equivalent and doesn't really offer much more convenience than cash. Others feel it is the only sure way to prevent yourself from falling into a financial hole that you may never recover from.

The debates between credit and debit cards will probably go on forever.


So which one is better Credit Card or Debit Card?
 

shreyadas

Par 100 posts (V.I.P)
well now in deep thoughts

the information is just awesome after reading this i guess i would prefer using both

debit first and credit when the balance gets nil in the debit ;)
 

ashimava

New member
depends..but credit card offers a degree of safety...as the liability of any fradulant transactions are usually taken up by the credit card issuers.
 

drnaga

Par 100 posts (V.I.P)
Debit card is always secure and safe considering that you only purchase from the money you have. Credit card can lead to unnecessary interest charges and so on.

One should use credit card only when it is an emergency and doesn't have enough balance on the debit card to support.
 

changs

New member
debit is better because wen u spend money only which u have in your account an not money on credit basai
 

sprs248

New member
advantages of a credit card over a debit card are:

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With a flexile spending limit, a cardholder can take advantage of the easy loan facility of a credit card, and can use it to purchase items or spend money that he expects in the near future, not just money that he presently has in his account.
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Most of the major features of a debit card such as withdrawal of cash from ATMs are available on credit cards as well.
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A credit card has a wider acceptance and recognition, especially in online transactions.
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A credit card has greater security measures ad checks than a debit card.
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Credit cards allow for cash back and bonus points schemes that a debit card is not eligible for.
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A credit card can be used as a convenient way to check and record your spending.
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Since there is a fixed credit limit, a cardholder cannot overstretch his purchases.



The disadvantages of using a credit card: Following are the disadvantages of Credit card



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The major one is the hidden costs of a credit card in the form of late payments, transaction fees, fuel surcharge. The consumer must take all of this into account before getting a card issued.
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It is not compulsory for the entire balance to be paid, but the interest is charged on the entire amount, regardless of the part paid. This causes a debt trap for the cardholder.
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The security of a card is not total and cases of fraud are extremely common even today.
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Credit cards can be used at ATM cards, but there is a considerable processing fee required.



All in all, a credit card should be used responsibly and the amount due should be paid in full.

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Debit cards provide access to ready money in a more convenient and less invasive form than cheques, and allow for a faster withdrawal of cash.
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They can be used by people who do not qualify for a credit card, and the major advantage is that a person spends money that he actually possesses from his bank account.
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A debit card can be used to withdraw money from an ATM with no processing charge. A debit card is a more convenient way of carrying cash around.



The disadvantages of the debit card:



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There are almost no security measures and a person can use a debit card to clean out the cardholder%u2019s account, if he knows the PIN.
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A debit card does not prevent the account from being overdrawn, and has less affordability than a credit card.
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A debit card also has a narrower acceptable area in India, with many merchants not accepting it since they are charged a fee every time they do.

The major problems of a debit card are negated by instant notifications of transactions via sms and emails. A credit card or a debit card are both useful tools that must be used carefully and sparingly to maximize your advantage.
 

rothnay1

New member
The credit card is better.

The issuer can assist you with a dispute with the merchant. The issuer can chargeback your credit card to resolve a dispute in your favor. This all can happen before you pay.
 

bbageek

Par 100 posts (V.I.P)
I am strongly for Debit card. The credit card is just an illusion and you'll know it when you have to repay the debt with good interest rates.

Proper saving and planning can ensure good balance in the debit card itself. "Debit cards are also quite safe" well, if you don't lend both your card and PIN number to a third party.

So, I am, sort of, against Credit cards, although the credit cards companies are making good business & money out of it. Also it's handy sometimes but you should know that it isn't free in anyway.
 

prasal

New member
Depends on the holder.. A responsible, careful person with a sense of repayment and interest calculation should go for a credit card.. until then one should stick to a debit card with a small limit
 

ravalmitwa

New member
credit cards are alwasy better if you do not forget to pay your bills on time.Else , it will put you in a very big mess
 
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