People in this modern age would like to make use of all those facilities that are available to them for making life all the more comfortable and convenient. When it comes to finance, the question that majority of them ask is which one is better – debit or credit cards.
According to the financial experts, both are known to come with their own benefits, however, when trying to check on the spending habits, the credit card has been termed to be the best bet. With the credit card from a reputed financial institution, there are very less chances of the card holder becoming victim to frauds. At the same time, he is also able to have a better admin-free financial back up means readily available.
At times, trying to pay off the outstanding debts, credit card and loans can be overwhelming, more specially, when interests get added to the calculation to become a huge amount. It is only through proper management of the credit card that the person can regain his financial freedom and try to eliminate debt quickly as possible and in an effective manner.
Reasons why credit cards with high limits are better when compared to debit cards
There are numerous reasons for credits cards to be considered superior to that of debit cards.
- Cost effective financial backup: In case, the debit card amount is exhausted and the person is facing some financial trouble, then he can enjoy availing financial security that is admin-free from his credit card. Whatever be the issue, the credit card can always be depended upon at any point of time and any place. At the same time, it is possible for the person to afford those items, which are required presently and the amount to be paid in the future.
- Establishing fabulous credit scores: By using the credit card, the person enjoys the opportunity to have a wonderful credit score rating to be established. By exceeding the limit or due to splurging, reputation could be tainted. In such a case, this misdemeanor can be rectified easily by using the credit card, something that is not allowed by the debit card. It is always better to make use of the credit card only to tackle emergencies. This way, it becomes much easier to have the owed amount repaid back and maintain an excellent credit score.
- Limited fraudulent activities: Even though customers are offered by financial service providers with security and safety with regards to their transactions, making use of the credit card doe expose the person towards facing lesser risks of frauds. Since the number of people holding credit cards with high limits increasing at a fast pace, it has become important for the financial institutions to check on their customer’s spending habits. This is to makes sure that the customer details do not get abused or stolen in any manner, leading to the provider facing legal and financial hassles.
Therefore, by going through the above points, it is clear that credit cards are much safer to be used when compared to debit cards.