Avoiding
Credit Cards in Favor of Debit Cards?
Jeanette Joy Fisher
Recent trends show that
younger consumers prefer using their debit cards and
don't bother with credit cards. This can be a big
mistake.
College students and people between the ages of
18-35 prefer debit cards to credit cards. These
young adults have been taught that credit card debt
leads to financial difficulties. Instead of learning
restraint and money management, these consumers rely
on their bank check cards to make purchases.
One problem with using check cards: many banks let
you go over your available balance and chare hefty
fees for overdrafts, as much as $30 for EACH
transaction, plus a daily overdraft charge, and
interest charges higher than a credit card normally
carries.
Debit cards also don't give you the same protection
as credit cards. Consumer protection laws limit the
liability for fraud from identity theft, a lost or
stolen credit card to $50, but you must notify the
bank if you lose your check card within 48 hours to
protect your assets. Also, many credit card
companies will issue you a refund if you purchase a
defective item or fraudulent service. In addition,
many credit cards cover you in case of lost or
destroyed merchandise.
Avoiding credit cards can keep you from building the
credit needed to finance a home mortgage later on.
Mortgage lenders need to know that you can handle
credit responsibly and the only way to prove that is
by using credit.
Copyright © 2006 Jeanette J. Fisher
Mortgage
Elimination Scams
Jeanette Fisher teaches how to get out from
under credit card debt, how
to use credit to make money, and six ways to build
strong credit to finance your first home and
multiple investment properties. For a free credit
advice and free ebook "Credit Tips for Mortgage
Financing," see
Worry-Free Credit Information: Free credit card debt
help today!
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