Did you know that as soon as your credit card is swiped you are starting the interest on that balance immediately? Well, according to this Newsweek.com article that is exactly what is happening and so the trend has turned to the use of debit cards.
Banks are seeing the dollar signs and profits in this trend and so they are offering frequent-flier and similar rewards to get you to use debit options more often. Debit cards are the same as using cash--the money comes straight from your checking account.
The article lists the following reasons why using a debit card is becoming so popular:
- You know you are spending real dollars--money you actually have not a loan.
- Ease of access to your money--ask for cash back when you make a purchase.
- You are saving--no interest saves you.
The down side is you aren't building credit and you are not as protected from fraud as when you use a credit card.
Know More about credit at BizCreditPolicy.com.
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