Tip:
Highlight text to annotate it
X
How to Decide between Getting a Credit or Debit Card. In this day and age, people use
less paper, and more plastic. But which kind of plastic is best for you? You will need
Awareness of your spending habits and knowledge of your credit history. Step 1. Ask yourself
a few questions. What you want to use your credit or debit card for? Is it for convenience?
Do you want buyer’s insurance? Do you want to improve your credit score? Debit cards
are easier to get approved for than credit cards. Step 2. Gather all the information.
Be sure to read about all charges and rules on both credit and debit cards. Step 3. If
you think you can pay off the balance in full every month, choose a credit card. It helps
you build a credit history, and there are more perks, like rewards, cash back, travel
and buyer’s insurance. You also get more protection if your information is stolen or
lost. Step 4. Choose a "no-fee" card with a zero percent interest introductory rate.
Read any pamphlets and updates that the company sends, and pay your in full balance every
single month. Step 5. Be honest with yourself. If you are prone to accruing debt, a debit
card is a good choice for debt deterrence, because they are directly linked to your checking
account, and you will incur a penalty immediately if you overdraw. Merchants will ask you if
you'd like "credit" or "debit." Choose "credit" to avoid entering your PIN number, which will
protect you from identity theft. Step 6. If you think you want a debit card, read the
bank's policies to see what penalties there are for exceeding your account balance. Remember
– you’ll have to keep close track of how much money is in your checking account. Now
plunk your plastic with impunity! Did you know The first credit card was issued in 1951
by Frank McNamara, founder of the "Diners Club," for customers to use at restaurants
in New York.