Swiping a debit card may put you at a greater risk than using a credit card. It may be convenient but the open invitation to fraud outweighs the benefit. Checkout the seven times below where you are better off not having the transaction with your debit card for security purposes.
- When shopping online
This is an important tip today because your online transactions have probably increased. In case of a fraudulent charge, it will be harder to dispute it if you used your debit card. Also, if a criminal accessed your bank account through your debit card, your money would have been long gone before you realize the breach.
- When you are budgeting
A credit card may be more helpful in organizing your budget compared to a debit card. It is easier to see all your daily expenses if it is in one place. Just pull your statement to analyze and track your money.
- When staying at hotels
Did you know that hotel employees put a hold on the length of your stay plus extra money to cover your potential charges? This could impact your ability to use your money for other expenses.
- When renting a car
Similar to hotels, car rental services put a hold on your money when you use a debit card. As long as you have the vehicle, you may not be able to access your funds. This could be dangerous if you have overdrafts and checks.
- When you are after rewards
You earn nothing with a debit card. If you want perks, use your credit card for all your purhcases and get rewarded with miles and other rewards.
- When you want to build credit
No matter how much you spend on your debit card, it will never go towards your credit score. Inversely, anything you buy with your credit card and pay off at the end of the month will build your credit positively.
- When traveling abroad
If you insist on using a debit card overseas, have a separate one with only a limited amount of money. In case it gets hacked, you do not lose a lot. It is better to be cautious because you often buy in unfamiliar places when traveling.