What are the pros and cons of debit cards?

Answer 1

pros are that it is your own money, you are not spending anything you do not have in the bank. You don't have to make monthly payments. There may be a $1-$2 fee for using the card, but no interest is tacked onto the card. It can be used as a "credit card" for things such as hotel reservations and car rentals. They are widely accepted and the need to carry cash around is less.

the only cons I can think of is that it is not reported to a credit agency for your credit report. And as far as "having to write down what you spend" You do that if you write checks or if you have a "regular" credit card with a credit limit..you have to keep track of what you spend as well.

I personally have no credit cards and use my debit card for just about everything from taking money out of the ATM to making purchases & paying bills online.

Answer 2

Pros, are if you need a credit card to make a certain purchase it will work like one. When traveling you need to show a credit card for a room rental. This also helps here. You don't need to carry as much cash around with you. There are con's also but if your diligent you can avoid these. The one that sticks out the most for me is that you need the money in the bank to use it or you'll have an overdraft. This is the biggest con. But I like my debit card because the wife and I don't spend what we don't have. So for me it's much better than a credit card and there's no interest. Although some of the time machines charge you to take money out it's still cheaper than the 17% to 21% charged by most credit card companies.

Answer 3

The con of a debit card is that people forget to write down the amount of their purchases. Then when they write a check to cover the electric bill, the check bounces. Also, Never have a debit card with a spouse. if both of you forget to write something down then you are doubly screwed.

The positive is that it works like cash and saves a trip to the bank.


The trick to using one is to have plenty of money in the bank to cover things and to keep track of all spending. I keep a piece of paper on my fridge with my bank totals on it. Every time I spend something using the debit card, I write it down on the fridge. I see my totals daily and know what I can and can't spend. I also take the money to cover my monthly bills out of the total first, so I know what's left is mine to play with. I check my bank balance weekly on line so I know my totals are correct.

Good Luck.

Answer 4

You are only spending what you need to, from your money, rather than getting out cash and maybe spending extra because it is there.
Plus if you are with lloyds tsb they are doing a save the change scheme, where you can get up to £100 FREE! I've signed up for it.

Answer 5

Pro's: electronic purchaces, atm withdrawls

Con's: annoying looking bank statements in the mail, difficult to balance number if you don't keep track

Answer 6

pros:
-similar to checks, taking from your checking account., therefore not debt incurring
-purchases authorized by your pin (personal i.d. number), therefore transactions made simple and easy
-can be used where credit cards are accepted if your card has the mastercard or visa symbol

cons:
-easy to get overdrawn
-easy to spend, spend, spend

Answer 7

i dunno