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Credit cards vs debit cards

They will fight two of three falls without time limit … In this corner we have debit cards playing on the side of the technicians and in this corner, the credit cards from the rough ones.

Let the fight begin!

Pros

bank

Debit cards

  • Security: you can have the confidence of going outside without loading cash. Without risking your money.
  • Cost control: With debit cards, you can have a record of your expenses and better manage your economy.
  • No debts: You don’t spend what you don’t have.

Credit cards

  • Promotions: You can find very attractive promotions during different times of the year. Some include discounts and others, months without interest.
  • Emergency cases: You can use them when there is an emergency or unexpected expense and you do not have enough cash or debit to solve it.
  • Variety: There are several credit cards according to your profile. Some offer points, other miles to travel and others have no annuity, it all depends on what you need.

Cons

Debit cards

  • Protection insurance Banks are constantly trying to sell you insurance for your accounts.
  • They are not used for emergencies. When you have an unusual expense, debit cards will not help you, since you limit yourself to the money you have in the account.
  • Minimum balance. Some accounts ask you to have a minimum balance so that your debit card account remains open.

Credit cards

  • It is not an extension of your salary. Many people often use the credit as if it were part of their income. If they earn 20,000 and have credit of up to 10,000, they often have the misconception that they have 30,000 pesos per month.
  • Credit history If you do not pay on time, debts can affect your history and in the long term affect the possibility of obtaining another credit, in these cases we recommend you seek help.
  • If you do not plan your payments properly, the expenses can go eating you and make your debt a larger amount than what you initially spent. Don’t you understand your statement when you read it? We share this article that will guide you step by step.

In this fight, we declare a draw. Both debit and credit cards have their advantages and disadvantages; The secret is to know how to handle both, inform yourself about financial institutions and account types and be very aware when using either.