5 Reasons: Why Credit Card is better than Debit Card

Often credit cards are preferred over debit card despite having high risk factors. It is true debit card is a safe bet for financial thinkers but who have experienced credit cards can not deny its importance in life. Definitely both cards of debit and credit serve same purposes of transition money with a few differences. These differences divide plastic money into two categories though credit card offers more services.

Buying protection
Credit card companies offer money protection feature to consumers in case of fraud or card theft. If you found car is stolen and someone has purchased from your credit card, you can stop them immediately even you will get back your money. In other words your money is safe unlike debit cards where the thief can take all money immediately with no possibility of money back.

Car insurance & rental car insurance
Some credit cards offer car insurance facility to buyers. This may include both types of car insurance full time and rental insurance. You can save money through utilizing this feature. Remember car insurance may not have adequate insurance coverage which you can obtain through buying additional insurance coverage.

Discount in shopping, clubs, air-tickets, hotels and much more
Credit card industry has association with other industries like clubs, hotel, air-flying, super markets, etc. In this association, both companies facilitate discounted prices for the card holder.

Credits on time
A debit card will never allow you to spend more than your account. Here credit card suggests you the way. You can spend up to your credit limit mentioned in credit card terms & conditions subsequently you may repay it with or without interest. In case you need more you can extend too. It is the only reason why billions of peoples have trust on credit cards despite increasing number of credit card bankruptcies.

Other benefits
As you know credit card industry is struggling with cut-throat competition almost all credit card companies are offering additional services with their credit cards. These services may include various insurance policies, exemption in restaurants & pubs, bonus points reward schemes, prizes, lower interest rates for good consumers, easy loan, attractive offers and much more. Typically debit card does not offer these features due to less competition.