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Experts: Consider Replacing Your Debit Card with a Credit Card

0111-debitcard_full_600Millions of Americans use their debit cards every day as a way to make fast and easy payments for purchases. Debit cards offer fast payments because they are usually accepted in most places and can be swiped and processed more quickly than conducting a cash transaction. Additionally, debit cards provide protections that cash simply cannot match such as protection against fraudulent use and being lost. But, despite these upsides, some experts are recommending that consumers replace their debit cards with credit cards.

One of the benefits of using credit cards over debit cards, according to experts, is that credit card use can have a positive effect on your credit score. Using a credit card, and then paying off debt quickly, can help boost your credit score because this kind of usage helps to paint the picture that you are a responsible borrower. On the other hand, debit card use does not involve borrowing at all, and hence has no bearing on your credit score.

Another benefit to using credit cards is that they can offer lucrative rewards, simply for making normal purchases. These rewards can often be redeemed for cash, valuable items, and travel. Though there may be debit cards which offer similar arrangements, debit card rewards are not as popular as those offered by credit cards, and are generally not as attractive.

A final reason some experts recommend using credit cards over debit cards is due to the fact that credit card purchases can be financed over the short term. In the case that you don’t have enough money to pay off the purchase right away, you can usually pay back the loan within 30 days interest-free, or even a short time later at minimal interest. By contrast, debit cards do not allow any financing options at all.

For more from USA Today, click here.

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