August 16, 2015

August 16, 2015
10 Reasons Why Credit Is Better Than Debit

Welcome to another day in my life. Today is Sunday and I hope you are having a beary safe and great weekend so far. Dab the AIDS Bear is off with the Army and at a couple of other events. So stay tuned for more new pictures soon.

Hardly anyone over 18 uses cash any more. So when you pay do you use credit or debit? While debit cards could help keep you from racking up debt, credit cards might still be the better payment choice.

Travel Rewards

Credit cards offer juicy travel benefits such as airline frequent-flier miles, free hotel stays or discounted car rentals. That makes it easier on your wallet if you go visit the kids, family or friends.

Limited Liability

Youíre only on the hook for $50 for unauthorized use of your credit card. Many banks offer zero-liability policies if youíre victimized by fraud. But your liability could be $500 or more if the same thing happens with your debit card.

Credit Rating

Using a credit card wisely, such as paying bills on time and not maxing it out to the credit limit, improves your credit rating. Using a debit card does nothing for your credit score.

Price Protection

Many big banks issue credit cards that come with price protection. If you buy something, and then it goes on sale later (usually up to 60 days), you can get a refund for the difference. Not so with debit cards.

Charge Disputes

If you have a problem with a purchase, you can dispute the credit card charge with your bank and you donít have to pay while it is in dispute. With a debit card, the money has already been taken from your account, and youíll have to fight to get it back.

Payment Flexibility

A credit card allows you to get a high-cost product or service now and pay for it over time. You canít buy big-ticket items or expensive services with a debit card if you donít already have the cash in your checking account.

Free Insurance

Many credit cards offer no-cost insurance coverage, such as free car rental insurance, trip cancellation insurance, or free warranty protection or warranty extension. You donít get this insurance from debit cards.

Random Freebies

Credit cards provide a host of other free benefits, ranging from concierge services to free credit scores. Getting these extra perks means youíll keep additional dollars in your bank, which is important if youíre living on a fixed income.

Merchant Acceptance

Not all retailers and merchants accept debit cards ó at least not without drawbacks. For example, car rental companies and hotels will put a hold on debit cards, and some foreign merchants wonít take debit cards at all.

Cash Bonuses

Some banks offer lucrative cash bonuses to sign up for their credit cards ó some as high as $500. Also, many credit cards give cash-back rewards. Debit cards generally donít give you cash incentives.

Hopefully these tips will help you save money, have protection and get perks. Hope you have a beary safe and great Sunday!

Until we meet again; here's wishing you health, hope, happiness and just enough.

big bear hug,

Daddy Dab