Pros and Cons of a Debit Card

Debit cards are a great, convenient way to make purchases. However, they do come with certain risks and it’s important to be aware of the disadvantages, as well as the advantages of having a debit card.

Pros of a Debit Card

• Convenience. You don’t need to carry cash or take time writing a check. Just one swipe of the debit card and you’re on your way.
• Time Saver. Merchants don’t scrutinize debit cards like they do credit cards, so the check-out process goes much faster.
• You can get cash. Many grocery stores and any ATM will give you the ‘cash back’ option so you can get quick cash from your account when you need it.
• When you use a debit card you’re limited to spending the amount of money you have in the associated account. This prevents you from accumulating debt or being charged interest and those annoying late fees from a credit card company.  Quick Tip: opting out of overdraft coverage and enrolling in a linked account ensures that you don’t overspend and avoid hefty fees.

Cons of a Debit Card

• The ‘disputed charge’ process isn’t as fast and sometimes more difficult than with credit cards.
• Sometimes a debit card means extra fees including monthly service charges, per transaction fees, over-limit fees or extra fees for a low balance. Keep in mind that places like MoneyMutual.com exist to provide people with short term cash loans that will keep them from having to pay overdraft fees etc. With Money Mutual, complaints about pesky fees could be a thing of the past.
• They don’t help you build up your credit score. Credit cards allow you to show your ability to pay bills on time, thus improving your credit score.
• You aren’t as protected from card fraud. Sometimes with a debit card, all someone needs to get your money is your Personal Identification Number. Plus, most credit card companies can put a hold on your account if it shows any suspicious activity.

Generally any bank will offer a debit card. They are very convenient and sometimes even tracking your money is easier with a debit card. But it’s important to keep the downsides of a debit card in mind, as well. The more you know, the more you can be prepared to handle any debit card problem that comes your way.