Credit Cards Vs Debit Cards
As the credit card companies seek to expand and find new customers they have realized that there are many people who cannot get a credit card because of bad credit, but are still in need of a credit card or basic credit facility to make purchases online and book hotels etc.
Credit cards require the cradholder to be responsible with the credit facility that the credit card provides them with. Credit cards are extremely handy because of the amount of fiscal flexibility they can provide the cardholder with.
- Credit cards offer the cardholder financial flexibility.
- Credit cards allow online / telephone / fax purchases.
- Credit cards establish a credit history.
- Credit cards offer rewards.
However, many people these days are not eligible to hold a full regular credit card. There are many reasons for this such as a member of family being blacklisted, the applicant has no credit history of has defaulted of repayments etc. If you have tried applying for a credit card and are being turned down time and again, try applying for a debit card or charge card instead.
- Charge cards will not require a credit history.
- Charge cards can be used around the world.
- Charge cards allow cash withdrawals from ATMs.
- Charge cards can be used to buy online.
Because many students and high school students do not have an established credit history many will not be able to apply for a student credit card. If this is the situation you find yourself in - do not panic, just get a debit card or charge card. There are actually benefits offered by debit / charge cards:
- You can only spend the amount of money loaded on to the card.
- You cannot build up a credit card debt.
- Debit / charge cards will stop you from overspending.
If you do have a problem with not sticking to a budget then applying for a credit card might be foolish, as you may end up with a larg credit card debt. Rather than getting yourself into credit problems, why not take the safer route and apply for a debit card / charge card until you are confident enough in yourself to responsibly manage a credit card?
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