What You Shouldn’t Use a Debit Card To Pay For



Swiping a debit card is an easy way to make a purchase when you don’t have cash, but there are plenty of reasons you should be wary of using them. They’re good for routine purchases, and if you’re looking to keep your spending within limits, they do provide a little bit better way to manage that. However, for major purchases, credit cards are the better way to go because they offer you more protection. The convenience of using debit cards may be outweighed by the risk of fraud. The only reason you should use your debit card is to withdraw money from an ATM or bank. On top of that, by using a debit card, you’re missing out on the rewards you can earn from buying items with credit cards. Here’s when you definitely don’t want to use a debit card: 

 

WHEN STAYING AT A HOTEL 

Debit cards are linked to bank accounts. When you use a debit card at hotels, employees will often put a hold on the amount of time that you’re staying, plus some extra money in case you have other charges. That could definitely impact your ability to use the account for other expenses. 

 

WHEN RENTING A CAR 

Car rental services also place a hold on money in your account when you use a debit card, so you won’t have access to those funds while you’re using the vehicle. 

 

WHEN TRAVELING ABROAD 

People traveling overseas are often buying things in unfamiliar places. That’s why it’s a good idea to get a separate debit card tied to a bank account with only a limited amount of money in it. Then, if it somehow gets hacked, it’s not tied to the majority of your money. 

 

WHEN SHOPPING ONLINE 

Using your debit card to buy online can also put you more at risk, and if you discover a fraudulent charge, it can be harder to dispute. Even though banks still have protections in place for you with your debit card, a fraudster could empty out your bank account before you even realize that your debit card has been compromised. 

 

WHEN YOU WANT TO BUILD YOUR CREDIT 

Debit card purchases don’t count toward your credit score, but when you buy things on your credit card and pay off your balance every month, that helps build your credit.