Reasons Why Credit Cards May Be Better Than Debit Cards


2023/10/21 13:19:06 IST

Build credit history

    One of the biggest benefits of using a credit card is that it can help you build your credit history. This is important because lenders use your credit history to determine whether or not to approve you for loans and what interest rate to charge you.

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Fraud protection

    Credit cards offer better fraud protection than debit cards. If your credit card is lost or stolen, you are not liable for any unauthorised charges.

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Rewards programs

    Many credit cards offer rewards programs that can save you money on travel, dining, and other purchases. For example, you may be able to earn points or miles that can be redeemed for free flights, hotel stays etc.

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Purchase protection

    Some credit cards offer purchase protection, which can protect you against damage or loss to your purchases. For example, if you buy a new phone with your credit card and it is damaged within a certain period of time, your credit card may reimburse you for the cost of the phone.

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Other benefits

    Credit cards offer a number of other benefits, such as the ability to rent a car, book a hotel room, and make online purchases without having to enter your bank account information.

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Conclusion

    Credit cards offer a number of advantages over debit cards, including the ability to build credit history, fraud protection, rewards programs, purchase protection, and other benefits.

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Conclusion

    However, it is important to use your credit card responsibly and pay your bill in full each month to avoid interest charges.

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