Unveiling the best credit cards is no easy task.
Sadly, our society has become quite dependant on plastic and no wonder, considering the almost magical power the that marketers have bestowed on the illustrious Gold, Platinum and Titanium credit cards.
"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 debt, DEBIT cards are truly the better than even the best credit cards available.
A debit card physically resembles a credit card and is used as an alternative to cash for making purchases, much like a credit card, but without later needing the credit card debt solutions!
Debit cards are now accepted almost every place that accepts credit cards, including retail stores, grocery stores, gas stations and restaurants. The debit card can be used anywhere merchants display the Visa or Mastercard logo.
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 directly from your personal checking account at your local bank or credit union.
Debit cards and prepaid secure credit cards both 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-pay the card to a limit of your own choosing. You can then charge back only up to the limit you set. Credit card debt in America would not at such a critcal mass if everyone would use these two strategies.
Most debit or prepaid cards offer guaranteed approval for all consumers, even if you have 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.
An estimated two-thirds of all American households now have debit cards as another alternative to paying with cash or personal checks.
Even the best credit cards can only offer a way to borrow now and pay more later, much more, using the lender’s money, in effect placing the consumer at risk of incurring debt. A debit card on the other hand is a way to pay now using your own money, incurring no debt.
Debit cards allow you to spend only the amount that you have in your bank account at the time of your purchase. Credit is not necessary when using a debit card. A credit card is approved and funded by a bank or other financial institution, as a high interest loan with a set payment schedule if the balance is not paid off entirely within the first 30 days.
The credit card issuer allows you to use the amount up to the establish limit, based on your credit score ranking, 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 instead to ensure that you maintain spending habits that support your financial 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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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
