
Before we jump into why we should use credit card? Let’s have a quick look at the differences between Debit Card and Credit Card.
Here we are going to see how you could make banks start paying you, instead of you paying them.
i. Most simply debit card is the one using the money which you already have in the bank, we here call by the name “bank money”. Credit card is the one using the money we don’t necessarily have it, here we call by the name “bill money” and the bill which we receive probably at the end of the month.
ii. Using debit card, we spend the past income, which we have made already. However, with the credit card, we can utilise future income which we are expected to make it.
If you are expected to make 1000$, you could purchase electronic gadget of worth 1000$ and pay by credit card. Credit card bill can be paid at the end of the month. You don’t necessarily have to have money before hand prior to make a purchase.
iv. Debit card: No fees associated to maintain and completely free.

v. Really easy to get into trouble with the credit card. Spend more than what we have and it can become a habit over a period of time and might impact in the long run. Easy to spend above our means. With the debit card, you should have money to spend.
vi. Lots of people don’t realise that credit card debt’s interest. If you have only 1000$s of credit card debt, you decided to pay only the minimum payment. It will take you years to pay complete money back.
See installment plan of 25$ per month, you think that Wow! you could afford it. In Reality, when zero $ in your account, it will make your financial situation even tighter than how it is supposed to be. Credit card debt has the highest interest rates in the world and somewhere around 20-25%.
Most common reasons why people don’t want to get credit card:
i. Too much of hassle to go through the process and make research which credit card is the best in the market. ii. Don’t want to get into debt.
As far as myself is concerned, I pay credit card bill even before I receive the bill which helps me to improve the credit card score as well.
Why you have to go for debit card, instead of credit card?
It is completely free to use, no monthly fees or maintenance fees.
Additonally, not accumulating any debt.
Why credit card?
Using credit card, there are many products sold at discounted price when pay by credit card. For students, even if a little amount of savings, it means a lot to them.