Top 5 Reasons to Opt for a Credit Card Instead of a Debit Card

Everywhere you look in the world of finance and commerce, there’s someone who’s using a credit card. These cards have had an exponential growth in their popularity and usage in the past few years. This increase of credit card usage begs the question, why should one get a credit card in the first place? To make things easier for people who have no idea why they should get a credit card instead of a debit card, we have compiled a list of a few reasons. The following are what we feel to be the top 5 reasons of snubbing a debit card and getting a credit one instead.

1. Sign-Up Bonuses

It’s an open secret that everyone in this world loves free things, whether you’re a top athlete who rakes in millions every month or a single parent struggling to make both ends meet on a daily basis. When you apply for a credit card, the bank will sweeten the pot by giving you some lucrative incentives. Most banks usually give new clients $50-$250 as a sign-up bonus, while others gift reward points. No matter how your bank expresses its gratitude for acquiring your business, a sign-up bonus is something that is only exclusive to credit cards, which is why you should opt for it instead of a debit card.

2. Reward Points

As briefly touched above, banks have a reward point system. Whenever you pay for an item via your credit card, you are given bonus points. Once your tally of bonus points gets high enough, you can redeem them for fantastic prizes. These awards depend on the number of reward points you redeem. For example, for a small number of reward points, you can get a washing machine, but for an astronomical number of reward points, you can even get a car.

3. Safety

Safety is the biggest reason one should get a credit card instead of a debit one. If someone gets a hold of your debit card, they can withdraw large sums of money from your account with no red flags being triggered in the system. However, with credit cards, there is an added layer of security for unforeseeable circumstances.

4. Building Credit

There is a reason most people like using credit cards instead of debit ones. It is that your credit card transactions directly contribute to your credit history. Therefore, if you pay off your debt on time, you will have a good credit score, which will be brought into consideration should you apply for a loan in the future. Consequently, your debit card transactions don’t even show up on your credit, which is a major turn-off for most merchants and traders.

5. Insurance

Most banks provide excellent insurance packages to their clients who have applied for a credit card. Depending on the stature of the bank in question, these range from short six-month accidental coverage to long six-year life and accidental insurance. If this doesn’t make you see that credit cards are better than debit ones, we’re afraid nothing will.