Cash is no more the popular mode of payment for the purchases made. Thanks to the growing amount of thefts, people are hesitant to keep wads of money in their pocket. Hence, debit cards and credit cards have replaced cash as the most popular payment options in today's world. In addition to supermarkets and large retail outlets, cards are also being accepted by taxi drivers, cafe, shops and even by newspaper vendors. While it is undoubted that these plastic cards are the most preferred modes of payment, the question is which of them will prove to be beneficial to the customer. Will the benefit more from using the debit cards or the credit cards?
Using credit cards for payments
Credit cards are the best option for people who do not have enough money in hand to make a purchase that they think is most essential to their existence. It gives them accessibility to credit that can be repaid on a monthly basis. However, this is the most ideal option if you know how to use your credit card wisely. You should be able to clearly demarcate between the needs and wants and use these cards only for purchases that are very essential. People who are good with financial management and keep a close track on their income and expenditure will find credit cards the easiest to use. Using their credit cards wisely can also positively impact your scores. The results will be just the opposite if you use it frivolously without repaying the money used.
Before you decide on this payment option, there are few factors that you need to take into consideration though. These cards carry transaction fees which can prove to be costly in the long run. Merchants have to pay a fee called the "Swipe fee" every time you use the credit card to make purchases. These charges are transferred to your bill and you end up paying more than is necessary for your product or service. The other fees and charges that you will have to take into consideration are the annual fees, late payments and other financial charges.
Using debit cards for payments
Debit cards are the best option for consumers who love to live within their means. Since you will be using the money you have earned, there is no way you can go overboard, thus preventing you from getting into debts. These chances of these cards being stolen are very less and any fraudulent transactions can be easily detected and taken care of. If you are a frugal customer and want to avoid any overhead charges, then debit cards are the best way to go.