Financial institutes allow us to use many benefits. One of which is using cards. There are usually two types of cards. One debit card, another credit. What are credit cards? A credit facility these platforms offer is a credit card, which allows users to borrow cash up to a pre-approved amount limit. Consumers can use it to transact in the buy of goods and services.
A debit card is different from a credit card. Debit cards are the cards given to you for your business accounts. Using a debit card immediately removes money from your checking account. You can get cash from a debit card from the atm and also pay for your bills like shopping. You can also receive some money back when you use a debit card to purchase at a retailer.
The best debit card Singapore is easy to get if you open a business account there. You can do it offline as well as online.
There are many ways of using debit cards, and you must know why you should switch them with credit cards.
- Extra charges: You can avoid additional fees and service charges which come with credit cards. Credit cards frequently charge late charges, annual fees, and payment penalties. You can save yourself from these by using the debit card payment method. Debit cards often have low or no costs, unlike credit cards. You can draw money from any atm and check your cash availability. Sometimes due to the lack of adequate amounts in your account, your request for cash withdrawal can be denied.
- Knowing your account: with the help of debit cards, you can spend more. But you can only spend what you have. Unlike credit cards, debit cards use your own deposited money, and if you have only 100 bucks in your account balance, you can spend only that amount. Credit cards can spoil you in this case. Even when you don’t have the exact amount, you can spend money, and later, you have to pay it back to the financial institution, and if you pay it late, they may charge you some extra bucks. It is easier to get impulsive with credit cards and make any impulsive purchases, but you are always in check with debit cards.
- Security: You are secure and safe while using this card. No one can use a card without a pin. It would be best if you generated a few-digit pin marking it as yours. Once it is done, no one can use it, even if it is stolen. If your purse gets stolen and your card gets missing, you can call your financial institution to block your card.
- No interest charge: credit card mostly charges high interest, while a debit card does not. If you keep forgetting the payment date, this rate can create a hole in your pocket.
- Better for budgeting: Debit cards keep you in check. If you are impulsive, you should never get a credit card. Save you from overspending. It can help you with budgeting as well. You can keep track of all your expenses and spending.
