Saturday, June 11, 2011

Debit Card or Credit Card

Both of these types of cards are convenient for paying bills. Each type of card has its advantages and disadvantages. 

Credit Card

The main advantage of credit card is that it can help you build your credit history (you will need this to buy/lease apartment or house and car in the near future). The main disadvantage of credit card is that you are spending on credits. Credits are dangerous because it is intangible. You will keep spending until the monthly bill arrives. If you cannot pay your monthly bill, interest will added to it and it will damage your credit history. I would advise college students not to get credit card. 

Debit Card
The main advantage of debit card is you spend what you earn (or what you have in your account). The main disadvantage is that you cannot spend over what you have. Debit card is the way to go because you will not be in debt and it charges no interest rate. If you have the money, you can use it. But if you don't have the money, you don't use it. I would advise you to get Visa Debit Card as normal debit card does not allow you to swipe your card. I had both debit card and visa debit card before. You can pretty much pay anything online with visa debit card but not with normal debit card. 




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