Using a debit card has become an extremely popular method of making a payment. It’s because it is easy to use and convenient. Even if you don’t have cash, your money can be instantly deducted from your debit card when you make a purchase or when making a payment. Just like a credit card, you can use it for almost anything – online shopping, paying bills and a lot more. Does it sound interesting? Before you commit to a debit card, it’s essential that you find out its pros and cons.


No debt

One of the positive things about using a debit card is that you won’t have to go into debt. With this type of card, you will only be allowed to spend according to the amount of money that you have in your account and that’s it. If you run out of money, your spending will have to stop immediately. This is highly recommended for those who have a difficulty controlling their spending. If you are an impulsive buyer or you have a problem stopping yourself when it comes to spending, then a debit card is a better choice for you.


With a debit card, you don’t really need to carry cash with you all the time. It is a lot easier to make the payment because you won’t have to keep a lot of cash on hand. Unlike credit cards, the transaction you make using your debit card reflects on your account immediately. This means that you won’t have to deal with overwhelming bills at the beginning of the next billing cycle. You’ll also know at any given time what you have available to spend.

Inexpensive to use

Debit cards are a cheaper option compared to credit cards because they don’t charge annual fees. A standard debit card requires a checking account and some checking accounts charge maintenance fees. Checking accounts are a necessity so it is still important that you have one. Debit cards allow you to get cash for free from ATMs. Whereas, when you do credit card cash advances, you will have to carry the burden of expensive fees.

Easy to acquire

When it comes to the application, debit cards are often easier to acquire compared to credit cards. Applying for a credit card usually involves a longer process, and more often than not, a credit check is run to check your eligibility. You won’t have to go through all these to get a debit card. You can get a debit card linked to a savings or a checking account without having to go through a complicated application process. There is also no need for a preliminary credit check.


Higher risks involved compared to credit cards

One of the cons of using a debit card is that it involves higher risk. That’s because your money leaves your account right away after using it. This means that you may have to go through the hassle of filing a dispute if something went wrong during the time that you made a payment or you want to dispute a charge on the item you purchased.

No positive impact on your credit score

Using a debit card doesn’t help improve your credit score. The only way for you to build up your credit score is by using a credit card and making sure that your bills are paid on time. A good credit score comes in handy when you need to apply for a loan or mortgage and it isn’t something that you can achieve with debit cards. However, using credit cards can also work to your disadvantage if you don’t know how to use it responsibly. Late payments will result in a bad credit score and your credit score is what banks, credit unions and other lenders will look at when approving a loan.

No reward point

Many credit card companies offer reward programs with the use of points accrued by the users every time they use the card. You don’t usually get these reward points with debit cards unless your bank offers their own set of incentives.

Planning to get a debit card? Talk to one of our representatives at Calcite Credit Union.