There are several benefits of using a debit card over a credit card:
No debt accumulation: When using a debit card, you can only spend the money you have in your account. This means you are not borrowing money or accumulating debt as you would with a credit card.
No interest charges: Credit cards accrue interest charges if you don't pay your balance in full by the due date. With a debit card, there are no interest charges as you are using your own money.
No credit check: Most debit cards do not require a credit check, making them accessible to a wider range of individuals, including those with poor or no credit history.
Avoid overspending: Since debit cards are linked directly to your bank account, you can only spend the amount available. This can help in avoiding overspending and keep your finances in check.
No need to qualify: While obtaining a credit card may require meeting certain eligibility criteria, such as income requirements or a good credit score, anyone with a bank account can typically get a debit card.
Budgeting tool: Using a debit card allows you to easily track your expenses and maintain a budget, as transactions are directly deducted from your account. It provides a clear view of how much you are spending.
No bills to pay: With credit cards, you receive a monthly bill that needs to be paid on time. Debit cards eliminate this process, as the money is deducted immediately from your account at the time of purchase.
Widely accepted: Debit cards are accepted almost everywhere, including online and brick-and-mortar stores, making them convenient for day-to-day transactions.
Protection against fraud: Similar to credit cards, most debit cards come with fraud protection, so you are not held responsible for unauthorized transactions if promptly reported.
No impact on credit score: Since debit card usage does not involve borrowing money, it does not affect your credit score positively or negatively.