According to a recent survey, 66 percent of Americans believe that a debit card is safer than a credit card. Even more, millennials, a category which is aware of the latest technology and trends, are also for a debit card, as 69 percent of them would choose one over a debit card.
However, let’s not forget that even though they can help us avoid overspending, a debit card doesn’t come with any additional protection.
“One difference between a credit card and a debit card is that if there’s an unauthorized charge on your credit card, you just get a little sting. It’s a hassle to straighten out. But no money is taken from you,” said Robert Siciliano, identity theft expert.
Considering this, there’s one big question that pops in: when it’s actually recommended to use a debit card?
When you buy something from a small business
There’s a specific reason why businesses set credit card minimums. In a lot of situations, they need to pay an additional fee in order to process credit card transactions, not to mention that they can cut into profit margins for small operations and local stores.
Basically, if you use a debit card when purchasing something from a business like this, you indirectly help them keep prices affordable.
If you have a lot of credit card debt
While credit cards give you the possibility to enjoy bonuses – we’re talking about rewards credit cards here – as well as fraud protection, they also have high interest rates, which can significantly increase credit card debt, if you have any.
With a debit card, you can easily put your finances on track and avoid overspending.
When using the credit card would attract a fee
There are a lot of situations when you need to use your credit card, but this will automatically attract a fee. We’re talking about transactions made at other ATMs, or when you’re paying taxes or other types of bills, but not at your bank.
You don’t need to pay more to use a credit card, so a debit card often makes way more sense, in situations like those mentioned above.
