Apply Online for a Credit Card or Get a Debit Card?

All sorts of plastic cards exist in this world that requires us to swipe in order to pay. Debit cards, credit cards, charge cards, gift cards, and more. Many people own both a debit card and a credit card these days, using each one for certain situations. Debit cards for groceries. A good credit card for a large clothing purchase or perhaps gasoline. Some people may forget the difference between the two, which is a big no-no. Knowing what both your cards can do, whether you want one or the other, and what they can offer you can be important when deciding upon a card or choosing when to use that card in a specific situation.

Each card has a specific function and will act differently when it comes to your funds. When you swipe your debit card and then punch in your PIN (personal identification number), you are allowing that particular business to remove money from your bank account right away. A debit card is a great alternative to always carrying cash. You can also use your debit card to access money at ATMs, taking that directly from your bank account as well.

A credit card, whether it is a rewards card or a student credit card, will act much differently. When that card gets swiped, you are borrowing money from your particular credit card provider in order to pay for your purchase. Eventually you will receive a bill and you will have to pay back that amount of money. A credit card is also handy when you do not have cash, but using it too much can mean building up a large debt and possibly amount you realize you cannot pay when your bill comes around. You will also be faced with possible fees and finance charges if you do not pay off your bill in time or do not pay off the full balance. There are some credit cards that allow you the ability to get money from ATMs as well, but the money does not come from your bank account and is instead called a cash advance, which usually comes with higher percentage rates and will be the last thing you pay off if you already have a balance.

Both cards will typically require you to have some kind of liability if the card becomes lost or stolen and someone starts making purchases with it. In each case, be sure to report your card loss to a fraud department as well as the police. With a credit card, you can be liable of up to $50, though recently credit card companies have been offering 0 liability and even reimbursement of the lost funds. With debit cards, you could be liable for much more – as much as $500 if you are not quick enough to report your card as missing or stolen.

With credit cards, should you purchase something that is damaged or you realize the quality is much less than what you expected, you can contact your credit card company and withhold the payment. The same is not true for debit cards. Once you pay for it, you pay for it, just like with cash. The money is now in the hands of the business, and the only way to get back your money is to return the merchandise. Even then, you may not always get the money back and may instead get in-store credit or some kind of gift certificate.

So what would you like to do? Ask your bank for a debit card or go search credit cards in order to find a good credit card to your liking? Each one is easy to obtain; you can pop into your bank and make the request, or go apply for credit card online. It will be your choice, and before you decide upon one, the other or both consider how you plan on using the card. Will you want to pay for your items now or would you prefer to pay for them later? If you apply for a credit card, do you plan on paying the balance off each billing cycle or will you be carrying a balance? Consider your grasp on responsibility before choosing a card. That way you can better gauge the ways you might handle the use of the card and will feel very positive about the decisions you eventually make.