U.S. users prefer debit cards to credit cards

Checking Credit Card

There’s no doubt that credit cards are insanely popular in the United States, but, to our surprise, a new study revealed that 44% of Americans admitted that they prefer debit cards for daily purchases, like food and fuel, while just 34% of them opt for a credit card.

According to Madison.com, the average household has a credit card debt around $5,700, but there are also borrowers for which the amount is significantly higher.

Ok, but why?

However, there’s one big question: why they opt for debit cards and ignore other types, like credit cards or even travel rewards cards, cash back cards and more?

Apparently, it is way easier to avoid racking up debt when using a debit card. As soon as you don’t have any funds in your account, you can’t swipe anymore. On the other side, credit cards are very tempting, offering limits that are higher than most people can afford.

It looks like over 70% of those who use debit cards more regularly have dealt with credit card debt in the past.

Don’t forget about the advantages of credit cards!

First of all, you should keep in mind that credit cards are great for helping you boost your credit score. Sure, when it’s used incorrectly, it can be a dangerous thing, but on the other side, it can help you build credit.

Credit cards also offer rewards, especially in the form or cash back. Debit cards, on the other hand, don’t have such benefits on purchases, so you can actually be missing out on free money!

Finally, one of the main advantages of credit cards is also their ability to offer purchase protection. In case something you buy it lost, damaged or stolen, you’re all covered. Yes, debit card are a record of your transactions, but they don’t offer the same level of reassurance and can’t cover actual losses.

Even though credit cards offer several benefits, compared to debit cards, in some situations, it’s actually recommended to use a debit card! What are your thoughts on this? Let us know, by dropping a few lines in the comments section below!

student credit card