With almost everything in life there’s a balance that’s required. Just as there’s good and evil, yin and yang there are also advantages and disadvantages of debit cards.
Debit cards can keep your from going into debt
This is because debit cards accesses your own funds. When a consumer uses a debit card the money is drawn directly from their bank account for when a purchase is made. And you don’t accrue a balance on which you need to pay interest. Although some chequing accounts have fees associated, they’re significantly less than most credit cards. Avoiding late fees, annual fees and interest charges can save you a bundle.
The standard debit card offers very small or zero rewards.
Most debit cards don’t come with offers of earning reward points much like having a credit card. You can’t be rewarded for the use of a debit card.
No credit checks necessary.
Unlike with a credit card when applying for a debit card your credit score isn’t a factor for approval during application process. This is because debit card use doesn’t appear anywhere on your credit report therefore they don’t affect your credit history or score. The only positive thing you’re doing is keeping yourself from going into debt.
Debit card use doesn’t appear anywhere on your credit report.
And your credit score is essential in showing whether you’ve a history of financial stability and responsible credit management. And a credit history and good credit score is essential throughout your life. Especially if you’re dreaming about owning your own set of wheels or becoming a home owner one day.