Some Tips to Overcome Problems Associated with Debit/Credit Cards

Those days are long gone when people used to visit banks and stand in the queue to collect or deposit money. They have debit/credit cards now. With debit card, a person would have to restrict himself to the existing balance of his bank account. With credit card however, he can borrow money from the bank.

There are pros and cons attached with everything. Debit/credit cards are no exception. A slew of advantages come with those cards, but some problems also come along. It’s important for cardholders to identify the problems and overcome them.

Recursive Debt

This perhaps is the most common problem. When credit cards are used, debt starts to accrue. When the amount of debt increases to an abnormal extent, the card gets blocked and the cardholder is given a definitive time limit to clear all debt. The best way to overcome this problem is to prevent the debt from accruing. For that, the cardholder needs to make sure that he has an emergency fund. Also, it’s wise to pay the money to the bank shortly after a purchase.

Swiping Fees

Banks normally charge retailers more if customers swipe in with their debit cards. Due to that, many retail merchants ask customers to pay via their credit cards. That’s how, debit cardholders find themselves in problem. To handle this, customers need to have both debit and credit cards. They can use credit card at the retail merchant and the debit card for other purposes.

Credit Score

Maintaining a good credit score is both important and difficult. If credit card bills are not paid in time, this will result in a bad credit score. A bad credit score may give the cardholder trouble in future if he applies for a loan. To avoid this, cardholders need to pay the bill in time and review the credit report minutely to make sure it’s fully accurate.

Security of the Card

Be it credit or debit card, security is highly important for any cardholder. If the card is stolen, the cardholder would have to face unnecessary hassles. For debit card holders, the situation is even worse because if they don’t report the loss of the card within next few days, they’d have to pay heavy penalties. So, the card must be kept in a secured place.

By following the aforesaid tips, a cardholder can avoid the problems that come with credit or debit card. To make the best use the card, the cardholder should always be on the lookout of credit and debit rewards. They could be small in amount, but could be used for additional purchases.

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