From Debit to Credit
Thursday July 10, 2008 ·
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About a year and a half ago I decided to switch over entirely to using my credit card for everyday purchases, before that I had used by debit card exclusively. I liked using my debit card for several reasons, but over time I started to realized that credit cards offered me more benefits than purchasing directly against my checking account. Here are a few of things that convinced me to switch: 30 Day Loan Credit cards give you a free 30 day loan...every month! You can make a purchase today and not have to pony up until the due date some 30 days later. This of course could be dangerous in the hands of the fiscally irresponsible, but for those that aren't, this gives you the opportunity to hold your money in a high interest saving / money market account until the due date. Most of the debit \ checking accounts out there have a low, sometimes negligible , interest rate. You can earn money by saving and paying once a month for your purchase vs. every time you make one. Purchase Protection There is no lying when saying that if you had to dispute a charge on your account, that dealing with a Credit Card company (CCC) would be less stressful than if it were with a Bank. I would assume that the frequency of people having cases of identity theft and fraud is much higher with a credit card account than it is with generic bank account. CCC's are better equipped to deal with cases of arbitration, plus, they have almost as much stake in recovering the funds as you do. When your debit card is comprised, you lost those funds, with a credit card the transaction sits in "limbo" until it's resolved. I don't know about you but I'd rather the thief steal my IOU than my cash. Money Back \ Rewards Point \ Free Airfare Credit cards offer everything from free trips to cash back on all purchases... is your checking account providing those perks? Nope, and neither was mine which made it all that much easier to switch over. I found a card that offered me cash back on all of my purchases, and now every year or so, usually during Christmas, I cash in my points for some denero. Comments
"I have no riches but my thoughts. Yet these are wealth enough for me." - Sara Teasdale
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