Reasons to Use Debit Card
By Anupama Deshpande | October 27, 2017

Now-a-days, people avoid carrying cash and they instead make a use of a Debit Card or a Credit Card. Use of these plastic cards has lots of benefits like less risk, convenience, fast payments, etc. Moreover, these cards provide many discounts and offers on using them which are not there while using cash.

A debit card is a plastic payment card which can be used for making purchases instead of cash. It is similar to a credit card, but unlike a credit card, the money is debited directly from the attached bank account on transaction.

There has always been a question whether to use a Debit Card or a Credit Card! What are the various reasons to use Debit Card? What are the benefits attached to a Debit Card Usage? and so on!

I have mentioned below multiple reasons to use a Debit Card instead of using a Credit Card.

Interested to know Why you should not keep All Your Money in Banks Savings Account?

(1) Debit Cards have Wide Acceptance

Debit cards are usually widely accepted. They are easy to carry as compared to cash. No need to carry cash or your chequebook. Debit card can be used as an ATM card at ATM. Debit card can be used like a cash/ cheque when buying an item

(2) Reduction in Risk

If you carry cash then there is a risk of theft. Debit cards are much more secured with security measure like PIN and One Time Password (OTP).

(3) No Risk of Debt

When you use a Credit Card then there will be a debt on you until you pay of the bill of credit card. While in case of a Debit Card, such a situation will not arise.

(4) No Cost Involved

If you make a use of Credit Card, you need to pay its bill on time. If you fail to do so, you will be charged late payment interest which is very high in the range of 24% to 36% p.a. and you need to pay that high interest. Whereas, if you use a Debit Card, you can make transaction through it only upto the balance available in your bank account attached with that Debit Card. You can't make a transaction over that. The amount of transaction will directly be debited from your bank account, and therefore, there won't be any burden of debt on your head.

You may like Why you should not keep All Your Money in Banks Savings Account?

(5) Offers & Discounts

There come many offers and discounts, if you use a Debit Card such as discount on merchant stores, hotels, on booking travel tickets, etc. You will also get some cash back offers on making online transaction using your Debit Card. You won't be able to get any kind of discount or offer, if you use Cash instead of using a Debit Card.

(6) Fewer Fees

A Debit Card comes for fewer fees as compared to a Credit Card such as Issuance fee, Annual fee, etc. Further, there won't be any Late payment fees or Interest charges, etc. as you are not using any credit limit.

(7) You are always within your Budget

A Debit Card keeps you within budget which is limited to spending the amount of money you have in the associated bank account. It, thereby, helps in avoiding unnecessary expenses, which usually take place in case of a Credit Card due to higher Credit Limit.

Interest to know Become a Crorepati in the age of 40: the secret revealed

(8) Easier to Obtain

You are able to get a Debit Card more easily as compared to a Credit Card as no credit history or credit score is required for getting a Debit Card.

(9) Helps you remain Tension Free

You can make any transaction immediately without a worry of receiving its bill on a later date, unlike using a credit card to make payment now and get the bill later. So you will remain financially tension free.

(10) Get Better Foreign Exchange Rates

You will get the best foreign currency exchange rates using a Debit Card instead of a Credit Card.