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Why do people prefer to use credit cards instead of debit cards ?

Question by Nassim: Why do people prefer to use credit cards instead of debit cards ?
As far as I know, credit cards involve paying interest rates to the bank wich costs additional money on top of the purchases price. On the other hand debit cards are free when used in offline and online purchases, so does anybody know why people prefer to use credit cards instead of debit cards ?

Best answer:

Answer by sporregar

Debit cards aren’t necessarily free to use. My credit union allows 4 transactions per month free and then you have to pay a fee per transaction after that. Some stores also charge a fee to use a debit card.

If you pay your credit card balance in full each month you don’t pay interest so you’re coming out ahead there. Also, debit cards get deducted immediately and many people are walking a thin line with overdrafting and can’t afford the fees for that.

Many people like to have what they want when they want it and don’t mind paying the interest on the credit card because they can just pay the minimum due. They can keep up with the Joneses that way and not worry about actually paying off what they owe.

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Posted by getloans - January 30, 2013 at 1:01 pm

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