We all know that having a debit card and having a credit card has perks. Over the next two weeks we will discuss the advantages of both. This week we will look at the advantages of credit cards. Some wonder if it is best to get rid of the credit card completely and just use a debit. Well, the answer is no. You need a credit card in order to build credit. Here are some of the other perks of credit cards.
- Zero liability. Most credit cards offer zero liability. If your card is stolen and there are unauthorized transactions made, you still have access to your funds while the bank fixes the problem. With a debit, you will receive the money back, but it may take a while.
- Building up a track record. Like we mentioned earlier, building up a credit history is important. Your credit score is a vital part when it comes time to take out a loan for a car or a home.
As you can see, getting rid of the credit card completely is not the answer. Having both a debit and credit card can come in handy, when used properly. You just need to know when is the best time to use each of these. Making sure you make all payments on time and don’t take advantage of the credit card is also key. Next week we will discuss the perks that come along with a debit card.
Have any tips you would like to share? Let us know below – We’d love to hear!