Unveiling the best credit cards is no easy task.
Our economy has become dependant on plastic and no wonder, considering the almost magical convenience of a credit card.
"The man who never has money enough to pay his debts has too much of something else."
- James H. Aughey |
However, for those wishing to take advantage of the convenience of plastic, while not accumulating credit card related debt, debit cards are truly the best credit cards.
A debit card physically resembles a credit card and is used as an alternative to cash for making purchases, much like a credit card.
Debit cards are now accepted almost every place that accepts credit cards, including retail stores, grocery stores, gas stations and restaurants. The card can be used anywhere, where merchants display the brand name or logo, as an alternative to a checkbook or cash.
So what’s the difference between the debit card and the so called best credit cards out there? When you purchase something with a debit card, the funds are taken out directly from your checking account at the bank or at the credit union.
Debit cards and prepaid cards give you the convenience of a credit card, without the associated debt and can generally be used at almost all the locations that accept credit cards, including online shopping sites.
Debit cards deduct the price of your purchases directly from your own checking account, while the prepaid cards provide a sort of pay-as-you-go alternative, allowing you to pre-load value onto the card that you can then spend.
Some debit or prepaid cards even offer a guaranteed approval for all consumers, even the ones with bad or poor credit.
Although most debit cards are branded with the two largest card issuers, Visa or MasterCard, there are other types of debit cards accepted only within a specific country or particular region.
You can use your debit card like a credit card for shopping, ATM transactions, getting cash and all immediate banking needs. An estimated two-thirds of all American households now have debit cards as another alternative to paying with cash and personal checks.
Even the best credit cards are a way to borrow now and pay more later, much more, using the lender’s money, in effect incurring debt. A debit card, on the other hand is a way to pay now using your own money.
Debit cards allow you to spend only the amount that you have in your bank account. Credit is money made available by a bank or some other financial institution, as a loan.
The credit card issuer allows you to use the amount up to the establish limit, based on your credit history, your income, outstanding debts and your ability to pay. The understanding is that you will repay the amount plus interest, if you choose not to pay back in full each month. A monthly statement details your charges and payment requirements.
Debit cards are in fact easier to obtain than the very best credit cards. Using a debit card is a convenient alternative to writing checks and saves you from having to show identification or give out personal information. They are also more likely to be readily accepted by merchants in other states and countries.
So don’t get sucked in to the so called “best credit cards” debt trap. Go with a debit card to ensure that you maintain spending habits that support your goals of building and maintaining increased wealth and prosperity.
"Creditors have better memories than debtors; and creditors are a superstitious sect, great observers of set days and times."
- Benjamin Franklin |
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