A lot of people wonders, "I have a VISA debit card, why do I need a credit card too?" Actually, credit and debit cards are two totally different payment options. There are many benefits a credit card offers that a debit card does not. Some of these are:
- Bank cards report to your credit report and if handled properly increase your credit scores.
- Convenience. It is virtually impossible to rent a car, book a hotel room, or purchase airline tickets without one.
- Liability. Credit cards offer consumers protection under the Fair Credit Reporting Act (FCRA) for purchases over $50.00 Most debit cards, either pre-paid or tied to a checking account, and business credit cards do not.
- Fraud Protection. Purchasing scams, especially on the internet, are ram-pet. Using a credit card for telephone and online purchases reduces risk to your cash flow.
- Purchase Protection. Some credit cards offer card holders Purchase Protection. This added benefit guarantees the items you purchase from theft, accidental breakage, etc...Be sure to ask your card issuer about this valuable option.