The Advantages of Credit Cards over Debit Cards

The argument over which is better – credit cards or debit cards – is hotly contested and probably will be as long as the both exist. They both have their advantages and their disadvantages, but many of those pros and cons simply depend on how you are with your money. Debit cards are better if you are not good at controlling your spending and if you need more discipline with paying your bills each month. However, credit cards are ideal if you have control of your spending and do not have a tendency to spend more than you can afford. Here are some other advantages of credit cards that you may enjoy.

The Grace Period
Grace periods are one benefit of using credit cards because, as the term implies, you have a few extra days to pay your credit card balance. If you are able to keep money in the bank, the grace period allows you to keep the money in the bank and gather a few extra days of interest before paying your bill. As long as you are careful, you can use this method to make your money work for you while still using your credit cards responsibly.

Fraud Protection
Credit cards offer a type of security that some debit cards do not provide. While some debit cards have fraud protection, credit cards typically offer better protection like zero liability or a maximum of $50 liability. You can also dispute purchases with your credit card company if the products you purchase are not satisfactory under some circumstances. Sometimes it is even easier to work out a solution to unsatisfactory merchandise if you used a credit card to pay for it. Some credit card companies even offer extra warranty protection for your purchases.

Rewards Programs
If you are careful with your credit card usage, you can take advantage of the rewards programs that many of them offer. Some credit card issuers offer one percent cash back on all your purchases while others may offer frequent flier miles, discounts at various businesses or other types of rewards just for using their card.

Credit cards can be a benefit to you if you use them correctly. However, it is up to you to be responsible with them and only charge as much as you can afford to pay off. Otherwise, a debit card may be your best bet.