No cash on hand? A debit card offers an easy way to pay for things on-the-go – though, there are many instances when using your debit card to make a purchase isn’t a wise thing to do. As a rule of thumb, any major purchase that doesn’t require cash should be paid for with a credit card. That’s because credit cardholders tend to have more protections in case their card is hacked or used illegitimately, compared to debit cardholders. Considering this, here are 4 instances when you shouldn’t use your debit card.
Refrain from using your debit card when you...
...stay at a hotel.
Because your debit card is linked to your bank account, it’s more susceptible to financial damage, should your card information be released. What’s more, employees often put a hold on your means of payment when you stay at a hotel. While this might sound like no big deal, an extended hold on your debit card could mean trouble, if the bank decides that you can’t spend any money until the hold is released.
Even when you’re traveling domestically, it’s common for your debit card to be declined, if your bank doesn’t recognize the places you’re visiting. Therefore, it only makes sense that visiting new places in other countries can jeopardize your ability to use your debit card. Not to mention, financial hacking can be more of a risk in countries that are less technologically advanced. Stay safe and use your credit card.
Though you might believe that it’s smarter to shop online with a debit card, doing so can put you at risk. This is because fraudulent charges often occur online, and if you become the victim of a hacker, it can be harder to dispute incorrect debit charges than it would be with a credit card. Even though your bank has protections in place for hacked accounts, you’re much better off, if you use a credit card to shop online.
...want to build your credit.
If you want to up your credit score, you might assume that staying away from credit cards is the best way to do so. While it’s true that credit cards can harm your score if used too frequently, using your credit card for routine purchases and paying them off in-full is a far better way to build your score over time, compared to habitually reaching for your debit card.
Inspiration can come from anywhere – just ask the team at The District Flats Apartments in Lenexa, Kansas. By passing along this information, we hope to inspire you with new ideas, projects, and goals, too.