5 Benefits of using a Debit Card over a Credit Card

The debit and the credit card from a certain stand point, are the same; they both are plastic money and they both  offer a sense of security and convenience while shopping. Both the cards let you withdraw money and both the cards let you enjoy discounts and offers. However these similarities aside, the cards are fundamentally different, in that, one is based on credit while the other is an extension of your account with your own money.

If you are someone who is conscious of your spending and someone who does not like the “credit way”, the debit card should be your plastic card of choice.

Credit  Card Versus Debit Card
Credit Card Versus Debit Card

Here are 5 good reasons why the debit card is better than a credit card

1.The first defining difference is that your debit card is free, you don’t pay interest to anyone for spending on your card. You are using your money and so there are no interests or fee or billing cycles that you need to constantly be careful of.
2.When you withdraw cash from an ATM, you don’t pay a transaction fee. And even in some of those rare arrangements, where you pay, the fee may be far far lesser than what you pay, if you were to use your credit card.
3.You can never go over budget with your debit card, since you will always be within your balance limits. Your credit card, however, can take you way over board and this applies to a lot of young, first time card users, who get all excited with their first card, even more so in a very tempting marketplace like Singapore.
4.Strangely for some reasons, credit cards are always the primary target, while luckily debit cards don’t even come close to enjoying that negative attention. 7 out of 10 cases of fraud with cards happen to be ones that involve credit cards.
5.If you need a safe plastic card to use, without a credit check, a debit card is the one that you go for. It is easy to apply and doesn’t require the rigorous scrutiny of the standard credit card. It comes with even most basic bank accounts.

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Author: Nicole Judy

Nicole Judy is a Wealth Specialist with one of Singapore's largest specialist financial planning organization also play as a Financial Adviser. As a financial planner, Nicole Judy currently provide professional portfolio advisory to corporations and individuals in the following specialties: Asset Protection and Insurance; Savings and Investments; as well as Legacy Planning, Wills and Trusts. He also specializes in unlocking investible cash from client's current assets and pride himself in providing a way for client to purchase assets with zero cash outlay and zero interests to service. In addition, Nicole Judy seeks to continuously upgrade himself by putting himself through challenges as well as learning from people from all walks of life. Specialties: Multi-currency Wealth Management Retirement Planning & Pension Transfers University Fee Planning Legacy Planning, Trusts & Wills Corporate Solutions CPF investments Life insurance, medical cover and health insurance Business succession planning Professional and Personal Development of People, Leadership and Talent Management, Team-Building with Team Ability Tools Unique Learning Process and Programs that Impact on Performance and Profits of Companies with Measurable Results Also, a Talent Scout and Talent Manager for Infopreneurs - Entrepreneurs who have a deep expertise in knowledge and share them via seminars and workshops.

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