Debit cards are very convenient. You don't need to write, (or keep track of), checks. They're safer than carrying cash. You don't need credit.
You can get a debit card from your bank, paypal, INGDirect, or just about anywhere you park your money. But, should you be using that debit card or should you use a credit card? This depends on how you handle your money. Debit cards are very convenient. That's good. However, debit cards are very convenient, and that's bad too. If you have trouble sticking to a budget, then the best advice for you is to only pay with cash.
But debit cards aren't right for everyone. Many people will spend less if they have to count out the cash rather than whip out the card.
Debit cards look just like credit cards and work about the same way. Only, you have to have the money already in your account to use them. You can't spend more than you have, which is good.
If you lose your debit card, by federal law, your loss is limited to $50 if you report the loss within two business days. But if you don't know you lost it, you could end up paying up to $500.
Most credit cards protect you 100% against unauthorized purchases.
If you buy something with a debit card the store gets your money directly from your checking account.
If you use a credit card the store gets their money from the bank that issued the card.
So, what's it to you?
Well, if what you bought turns out to be defective, and if you paid with a credit card, you just call the credit card company and let them know your returning the item. Whether or not the store will deal with you, you won't be charged for the item.
But debit cards don't give you any such protection. The store already got your money from your account as soon as you used the debit card. Now it's up to you to work with the store for a refund.
According to the experts, you should only use debit cards for small purchases and never use them online. Credit cards protect you. Debit cards don't.
Add in the benefits that some credit cards offer, like cash back or frequent flyer miles, and the credit cards come out ahead!
Except for one all important thing. Credit cards will put you in debt.
If you can't or won't pay your credit card balance in full each month then stick with the debit cards.
