The more expensive the item you intend to purchase, the better off you will be if you purchase it with a credit card instead of a debit card.
Bayside, NY (PRWEB) April 23, 2013
Personal Finance expert Walter Edelstein, CFP® has published new banking advice on cautions consumers should take when using a debit card for purchases. Consumers need to get objective information on best practices they can use to improve their financial situation. BankingAdvice.com is one of the sites that are part of TheAdvice.com Personal Financial Site Network that provides consumers with free information and easy to implement practical ideas to help them achieve their personal financial goals. Following is a summary of the new content which is one of the many new “How to” articles that have been published on TheAdvice.com Personal Finance Site Network.
Debit cards and credit cards certainly appear to be quite similar. They both carry a Visa or MasterCard logo, they both allow purchases of products and services without having to carry around large amounts of cash or hassle with a checkbook, and both contain some degree of protection against fraud or unauthorized account use.
But there are also some significant differences between the two types of cards. In fact, there are some situations where using a debit card comes with a higher degree of risk than using a credit card. Here are some of the riskiest places when using a debit card:
- Very Expensive Products. According to Mr. Edelstein “the more expensive the item you intend to purchase, the better off you will be if you purchase it with a credit card instead of a debit card.” Many credit card companies automatically provide extended warranties for any items purchased, so the value of this additional warranty coverage can be quite significant for expensive products. Purchasing an item with a credit card provides greater rights to dispute a purchase if problems arise. Of course, consumers shouldn’t use a credit card instead of a debit card because they can’t afford to pay for the item using a checking account.
- Gas Stations. Unfortunately, one of the most routine purchases for many of us – buying gas for our cars – can cause a major problem when one pays with a debit card. Many gas stations will impose a $50 or $100 funds hold on a debit card payment, even if only $5 or $10 in gas is purchased. If a consumer has a low balance in the underlying checking account, having this hold in place can lock up an entire account.
Click here to read the full article on BankingAdvice.com.
About TheAdvice.com Personal Finance Site Network
TheAdvice.com Personal Finance Site Network was launched in 2009, and since then has provided consumers with hundreds of free articles and financial tips across a broad array of personal finance topics. Several of the sites in TheAdvice.com Personal Finance Site Network include:
CreditCardAdvice.com – where consumer can learn how to establish credit, protect credit, choose the right credit card, and unlock the secrets of a credit report.
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Mr. Edelstein has financial experience that spans over thirty years. It includes being a Certified Financial Planner™, having a Master's Degree from Columbia University, and having served as Chief Marketing Officer for a major online bank where he honed his online marketing skills to help consumers achieve their financial goals.
TheAdvice.com proudly reaches out with this network of personal finance websites to help individuals and families discover the path to financial knowledge.