There are many reasons why people rely on debit cards and they are, for the most part, understandable. After all, if you want to be able to make payments without having to carry too much cash around, a debit card will be able to make matters less cumbersome for you. With that said, are there reasons why it's important to minimize the amount of debit card usage over the course of time? There may even be those who will do away with debit in general but there are certain points that Bobby Jain can bring to your attention.
One of the reasons why debit should not be done away with, as stated before, is because of the fact that it is a reliable method in certain respects. In addition, it's difficult for people to simply change the ways in which they pay for items, so completely eliminating debit can prove to be a challenge, to say the least. With that said, Bob Jain may be able to tell you about the reasons why debit should be cut down on. Here are just a few specifics offered by various financial authorities, Jain included.
USA Today posted an article about this and one of the reasons why debit should be minimized is to help maximize credit scores. While debit can easily help in terms of reducing the risk of debt, it's worth noting that a strong credit score can help you to attain a loan. Lenders may see your credit score and feel confident in your ability to pay it back over time. In order to build a strong credit sore, it is important to make timely payments without missing a single one.
If you want to be able to keep a budget, it is important to focus more on credit and less on debit. One of the reasons for this is because you will be able to take a good look at your credit statement and ensure that you understand where your money is going to go in the long term. With this in mind, you should be able to put together a better budget for yourself. If you were to utilize debit options, though, it's not likely that you will maintain records nearly as well.
If you are someone who is attracted to potential rewards, you may not want to use your debit card. Instances like cash back will not be nearly as prevalent with debit options as they are with credit, so going with the latter may benefit you. Whenever you spend a certain amount of money at any given location - gas stations and restaurants being a couple of examples - you are able to make a certain percentage back on your card. Surprisingly, credit is, ultimately, a more cost-effective choice.
One of the reasons why debit should not be done away with, as stated before, is because of the fact that it is a reliable method in certain respects. In addition, it's difficult for people to simply change the ways in which they pay for items, so completely eliminating debit can prove to be a challenge, to say the least. With that said, Bob Jain may be able to tell you about the reasons why debit should be cut down on. Here are just a few specifics offered by various financial authorities, Jain included.
USA Today posted an article about this and one of the reasons why debit should be minimized is to help maximize credit scores. While debit can easily help in terms of reducing the risk of debt, it's worth noting that a strong credit score can help you to attain a loan. Lenders may see your credit score and feel confident in your ability to pay it back over time. In order to build a strong credit sore, it is important to make timely payments without missing a single one.
If you want to be able to keep a budget, it is important to focus more on credit and less on debit. One of the reasons for this is because you will be able to take a good look at your credit statement and ensure that you understand where your money is going to go in the long term. With this in mind, you should be able to put together a better budget for yourself. If you were to utilize debit options, though, it's not likely that you will maintain records nearly as well.
If you are someone who is attracted to potential rewards, you may not want to use your debit card. Instances like cash back will not be nearly as prevalent with debit options as they are with credit, so going with the latter may benefit you. Whenever you spend a certain amount of money at any given location - gas stations and restaurants being a couple of examples - you are able to make a certain percentage back on your card. Surprisingly, credit is, ultimately, a more cost-effective choice.
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