Credit and Debit Cards: Choosing Dilemma

Posted by Nick Niesen on October 29th, 2010

As soon as you decide to get the card you face some questions ? what card finally to select? They arise because between both types we have more differences rather than commonness.

In fact on the surface cards are very similar. Cards are made of plastic, have some magnet or chip protection, shining bank logos and share the very size.

And probably that is all about their commonness. The first essential distinction lies in the logic of payments. The core sense of credit payment means, that in order to cover spending, money is "taken" from the future. Thus your credit is extended every time when you make "a purchase". And all your debt events are listed ? so you need to make periodical payments for account prolongation. Paying system of debit type is merely another. Your bank will just transfer money from your account wherever you wish.
The fraud protection is really significant matter. Credit cardholder can receive return with no more than 50$ of any stolen sum ? and only if he or she doesn?t forget to report the fact quickly. The best cardholders may be given a possibility to decrease the rate on this sum. Bad cardholders may receive no more than 50$.
As for debit cards ? you can also receive 50$ of fraud protection ? especially if you report the event during first 2 days. Moreover, you can be responsible for even some hundreds of dollars.

As for payments duration http://www.yourcreditoptions.com/Bad-Credit-No-Credit-Card-Offers-870386-page.php" target="_blank">credit cards give you a chance to postpone payments, moving them closer to the end of paying period. But keep in mind that one hand gives while the second takes away ? so the bank may suppress you with new higher interest rate. Оn the contrary, debit cards are the control tools of "real" money which is located at your account. This means that making payments has nothing common with extending debt. You just spend it ? and without any credit urgency.
Take into consideration one important similarity of all credit cards: due to Fair Credit Billing Act all the credit cardholders ? especially the U.S. citizens - have the right to restrain payments in case of poor quality of sold goods. This is called the "buffer zone" ? it exists between your account and merchant?s hands. So ? you can even get the recourse. As for debit card purchases money leaves your account immediately.
So, which card should be chosen is the matter of serious thinking ? and in this article I tried to help you. What you certainly have to conceive is the fact that any card ? being managed dowdily ? may bring you difficulties with fraud. And this is the pure truth; any kind of cards can one day show their hidden limitations.
In this case I guess that better variant for you is to apply for a debit card in order to easily buy. Else ? if you prefer the idea of delayed payment ? then you need the credit one. Just listen to yourself.