Rewards Credit Cards: Credit or Debit - What Is Best?The battle between credit and debit cards seems to be lasting from the very moment of plastics' creation. Some people prefer using debit cards, others find credit cards more convenient and beneficial. There are virtues and downsides to both card types. As for credit cards, they give you incommensurably more buying power and financial freedom. But after you satisfy all your needs and wants with the help of credit cards, you are to pay the money back. And, of course, you will have to pay it back with interest. While using debit cards involve no interest rates. But many credit cards come with enticing perks, bonuses and rewards programs. And what about debit cards? Do they give any rewards? And if they do, are those rewards equally beneficial as those granted by credit card companies? In fact, some people have no idea that debit cards come with cash back and point rewards and some other bonuses. But debit cards providers have to hit up the keen competition on the plastic market. So, they also offer rewards programs to their customers. Now let's take a closer look at the rewards offered by credit and debit card issuers and try to figure out which plastic cards bring more profit and are associated with fewer losses. If you say that debit and credit cards are way too different to compare, you will be partially right. Debit cards are for people who choose non credit card lifestyle. These cards do not give you extra buying power, like credit cards do. Debit cards are just a more convenient substitute of cash money. You are eligible to spend as much money as you deposited beforehand. But this type of plastics has an incontestable advantage - they do not carry any interest. So, debit cards cannot pull you into heavy debts. But when it comes to rewards, credit cards easily outbid their debit plastic rivals. First of all, the rewards a debit card offers you cannot be compared to the perks that a frequent flyer of a gasoline card offer can give you. For instance, a typical debit card with cash back grants you about 0.25% of cash back on purchases, on condition that you use your plastic as a credit card. This means that instead of entering a pin number, you sign your purchase. While cash back credit cards can give you up to 6% cash rebate on purchases and 10% or even more during introductory period. Besides, you can find an appropriate credit card with a beneficial rewards program that will perfectly fit your spending habits and lifestyle without annual fee. As for debit cards that offer cash back and points rewards, nearly all of them charge annual fee. However, debit cash back cards, as a rule, do not set any annual limits on the amount of points or cash back you can earn. That is a good thing. The weightiest argument in favor of credit cards with rewards programs is a great variety of rewards schemes. You can choose any program you want - from cash, auto, travel rewards to perks associated with charity or contributing to preserving our planet's ecology. So, rewards credit card will bring you more perks and bonuses that debit cards. But keep in mind the interest you will have to pay later on. Remember, there is no such thing as a free breakfast.
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