If you have ever doubted which payment method to do then you are also part of the club. As the physical money ended up losing space thanks to the cards, even by the evolution of the digital banks, like the NuBank, for example, the dispute was between credit or debit .
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Although each can be used in different situations, there is always that question about what is the best form of payment. The two are different modes of payment . So there are different situations to use them, however, using either one at the wrong times can bring financial problems in the future .
So let’s show a little of each one.
Although Money 360 has already talked about how credit cards work, it’s always good to reinforce them. And what is always good to remember is that one of the biggest mistakes when using credit card is to spend as if you were spending your own money . After all, even with you buying now, payment comes later.
Even because the expenses on the credit card will be paid when the invoice is paid . As much as it may seem advantageous, it is not always so.
To use your credit card, you need tight spending control to make sure you can pay your bill at the end of the month. Because, if you can not, you can enter a revolving credit or you will have to pay the invoice , which generates high interest charges.
Still, paying on credit has the added benefit of giving more time for the money to be rendered until the invoice closes .
The debit, in turn, uses the current balance in your checking account . In that case, you are buying with your money on time. However, you also need planning to use it.
If your purchase value is greater than your account balance, it will not be approved. Or worse, your purchase is approved, leaving your negative balance in the account. Which means that you will get the overdraft , also needing to pay interest according to the days when the balance is not positive.
Planning needs to be doubled especially when you use both on a day-to-day basis . Even because, as explained, you will need balance to be able to pay the bill.
When to use each of them
Whether in credit or debt, using one or the other will depend on your financial planning. However, there are recommendations for certain situations. Check out:
- Everyday shopping: experts recommend that they be held with the debit card . Thus, there is greater control over what is spent. And in the monthly budget, these expenses will already be listed, generating no surprises.
- Scoring program: In this case, it is more advantageous to concentrate most of the expenditure on credit . Even to be able to accumulate more points. But before you choose, be aware of your card’s conversion rate and the deadline for using them.
- High-value shopping : When you shop for more expensive products, use the credit . Also because the card offers the option of installment, besides helping in the accumulation of points in the programs of punctuation.