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When to Use Credit Card or Debit Card?

Senin, 27 Desember 2010 Leave a Comment

This question seems easy, but often times we are actually disadvantaged because they do not care about the use of credit cards or debit cards. Or at least, unable to enjoy the facilities offered to the maximum.

For example, some people use credit cards exclusively to pay expenses. They consider this method more secure. Through some banks, they can collect cash back or points incentive. However, this strategy requires precision and intelligence in using it so that the debt can be repaid in full or in full at the end of the month. If not, your debt will only grow.

If you use a debit card, you can only shop according to the remaining balance on your account. In fact, you should leave a few dollars after deducting the balance of the purchase. If the balance is not sufficient, you can not shop. This means you can only shop according to ability.

So you can take advantage of the facilities offered as much as possible and avoid the costs that you do not need, consider when you should use a debit card and when to use a credit card.

Use a debit card when:
* Buy something inexpensive or can be consumed

You run out of milk for children and a few other household necessities. Instead of wasting time, you stop by the mini home from the office. However, you're not carrying cash. Well, use your debit card since some mini usually apply a minimum purchase value is not so high. Do not use credit cards for purchases that are not too much or for goods that are consumed because you will pay more when you are late paying.

* Need cash fast

If you suddenly need cash, use your debit card. For BCA debit card holders, for example, you might as well take the cash in the cashier when you pay for your groceries at the mini market. Intake of such cash generally will not be charged extra, either by banks or by the merchant. The amount of cash withdrawal is determined by the availability of funds the merchant, but generally the average limit of Rp 500,000. Compare this with if you make cash withdrawals using credit cards. For Citibank credit card (all types of cards), for example, you will be charged interest at 4 percent of the amount taken.

Use a credit card when:

     * Shopping online

Either buy an airplane ticket or shopping at Amazon.com, you will be asked to pay via credit card. This is reasonable because credit cards offer greater protection in case of fraud (fraud or embezzlement).

     * Buying something expensive

Some credit cards offer extra warranty protection over the manufacturing of the products you buy. In addition, several bank credit card providers are often also works with merchants for promotional programs, such as buying fitness equipment with a special price. There is also an additional incentive program or reward accumulation that can be exchanged with certain gifts.

     * Proving credit history

You need to prove credit history when you start using credit cards and stop using it. Do this by buying an item with a credit card, and paid at the end of the month, or by paying the minimum payment. If records are good, you have the opportunity to increase credit card limit or qualify to use the Platinum card from another bank.

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