Credit Cards vs. Debit Cards: Elements of Financial Options
#1 Overview: Credit Cards: A method of acquiring goods or cash in advance on a financial institution and paying back later up to a specified amount. Debit Cards: Connected to your bank account, automatically debits for the transactions or withdrawal as soon as you make it. #2 Credit Cards: Pros: Credit Building: Paying with a credit card means that one is establishing a good credit history and so this is important for future loans or mortgage. Rewards Programs: Some credit cards provide extra benefits such as points, cash back, or travel rewards on the things that one buys. Purchase Protection: Credit cards are usually very protective against fraud and charge backs and allow the consumer to dispute any charges that relate to a bad product. Emergency Funds: Ensure you have funds available when there are catastrophes and you may not be in a position to make quick cash. Cons: Interest and Fees: Having a balance means higher interest charges and fees which may bring the price of