Is Debit the New Credit? | New Debit Card Perks | Increased Debit Safety | Credit vs Debit
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Today we ask if debit cards are better than credit cards with companies reaction to recent economic events.
Anytime there is economic uncertainty consumers tend to spend more on their debit cards rather than their credit cards. Due to this companies are trying to capitalize on this spending behavior by increasing the perks and bonuses as well as safety for their debit cards.
Discover is offering 1% cash back on their debit card while Bank of America is offering increased safety with next business day refunds on fraudulent charges.
With those details we can determine if debit is better or not compared against credit cards. In terms of bonuses and perks you can get a lot better than 1% cash back if you use a credit card so credit cards win in that category.
When it comes to safety, although these debit cards are now safer, a debit card is direct access to your checking account aka your bank account. Your credit card is simply a line of credit. It would be much safer to have a credit card stolen (I hope neither get stolen) since your actual bank account is not jeopardized.
I like the direction these debit cards are going with these recent changes but personally I will continue using credit cards as it works with my current financial ecosystem.
None of this is financial advice but simply what I am learning and how it fits into my financial lifestyle.
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