For smaller purchases and everyday transactions, many people don’t put too much thought into whether they should use a debit card or a credit card. But since your debit card is linked to your bank account and may not offer the same level of protection as a credit card, there are certain instances in which you may want to avoid using it. Even if you’ve limited yourself to debit card use because you want to avoid getting into debt by using credit cards, the following are some exceptions that you may want to consider making:
You’re a new customer
If you’re trying a retailer or a service for the first time, you might want to avoid using your debit card until you know you can trust the quality of service or merchandise. If you end up unhappy with what you purchased, returning that item or stopping service can be frustrating if you used your debit card, which is linked to your bank account. If you have a hard time returning the item or the business just ends up being seedy and takes too long to refund you, waiting for this money to return to your bank account can be very aggravating.
When it comes to memberships and ongoing services that you pay for monthly, you’re usually better off using your credit card, unless you know you’ll be a lifelong customer. Although not always their intention, some companies have a tendency of continuing to charge people monthly, even after they’re no longer customers and canceled their services. A recurring debit from your bank account can be a nightmare, especially if you need that money to take care of bills or other expenses. If those unauthorized charges happen on your credit card, however, you should be able to dispute them.
You’re buying something that won’t be delivered for a while
Whether it’s a custom order that will take a long time to fulfill, or the item is simply backordered, some merchandise can take weeks—or even months—to be delivered. If you never receive what you ordered by the promised date, or it just never even comes at all, you want to make sure you’re protected—especially if you’re ordering from a retailer you’ve never ordered from before. Ensure you have that extra level of protection by using your credit card, and in case you need to dispute the purchase altogether.
Are you receiving structured settlement or annuity payments, but you need cash now? Peachtree Financial Solutions may be able to help. At Peachtree, we can purchase your future payments and provide you with a lump sum of cash. By receiving your money sooner and in one lump sum, it can be easier to take care of certain things that the long-term payments may not be enough for. And when you work with Peachtree Financial Solutions, you have the option of selling just a portion of your future payments, or all of them. So whether you want to buy a car, purchase your first home, get rid of debt, or pay for college, Peachtree can help you accomplish your goals. Contact Peachtree Financial Solutions today to learn more about your options and for your free quote!
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.