![]() There is no background check or credit report review. With a debit card, as long as you have a checking account with the bank, you simply fill out a form and you get a card. With credit cards, you need to apply, have a good credit score, and have a credit check before you are approved for a card. Over the course of a year, this fee could rival the annual fee of a credit card. This is because many banks charge monthly maintenance fees on certain account types or if your checking account balance drops below a stated threshold. While there are no annual fees, you do have to pay attention to the type of checking account you have linked with your card. This means every year you have the account open, you will be charged a fee simply for having the card.īy using a debit card, you avoid this fee entirely.Īssuming a credit card charges a $95 annual fee, in 5 years that comes to $475 in fees! While not all credit cards charge this fee, a handful do and it can be anywhere from $95 a year up to $500 annually or more. Since the money from debit card transactions come directly out of your checking account, there is never a monthly payment to make.Īs a result, there are never late payment fees. Limited FeesĪnother of the benefits of debit cards over credit cards is that they do charge minimal fees. It’s an easy way to spend the money in your bank account without the possibility of going into debt. This is a great option for people who have just dug themselves out of debt and are learning to spend responsibly again. Since there are spending limits on debit card purchases in addition to only spending what you have in your checking account, you will not be entering into the dangerous cycle of high interest debt. ![]() Avoid DebtĪrguably one of the biggest advantages of debit cards is the fact that you can spend without worrying about going into credit card debt. Most people don’t like carrying a large amount of money around with them and debit cards solve this.Īnd since most debit cards are backed by Visa or Mastercard, you can rest assured that your card will be accepted at every retail store that accepts credit cards. Avoid The Need For Cashīy far the biggest benefit is being able to spend with a debit card allows you to not have to worry about carrying cash with you. Here are the biggest benefits you can expect to see when you use a debit card over other forms of payment. How Much Money Do You Need For Retirementġ0 Pros And Cons Of Debit Cards 5 Advantages Of Debit Cards.7 Investing Steps That Will Make You Wealthy.Free Build Wealth Boot Camp Email Course.
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