The Benefits of Using a Debit Card

There are many things to spend money on. And many different ways to spend that money. Two of the most common ways that people spend money are with cash or their credit card.

But there is another option. And that option is using a debit card. Using a debit card has numerous benefits over both the cash and credit card methods of spending money.

In particular, using a debit card benefits those who struggle to save money. It also benefits those that are currently in debt and struggling with it. People that rely on their credit cards too much and wish to stop should also check out debit cards.

What is a Debit Card?

Before getting into the actual benefits of using a debit card, it is important to know what a debit card is.

debit card

Most banks nowadays offer debit cards to all of their members. They look and feel and work much like a credit card. It is plastic, you slide it through the same sort of reader at stores, and then your purchase is made. However, its major difference from a credit card is that it is connected to your checking account. You can only spend money with it that you actually have. Unlike a credit card, you can’t charge.

1. Only Spend What You Have

Perhaps the single biggest benefit of using a debit card is that you can only spend what money you have. As mentioned above, debit cards are connected to bank accounts. If you don’t have money in your bank account, your debit card won’t be able to make a purchase.

This simple fact can greatly limit the amount of overspending that you do. It can help you save money and stay out of debt. For this reason, debit cards are great for people who tend to spend too much money.

2. No Interest Involved 

Like cash, debit cards don’t have any interest. You can use them as much as you want and never fear high interest rates. You won’t have to pay back any extra money on your purchases since no payments are involved.

This is a major advantage for debit cards over credit cards. With a credit card, you are almost always charged interest on every purchase you make. For instance, buying something for $20 could result in an additional $5 of interest. Making the total $25. With a debit card you’d only ever be paying the $20. No interest at all.

And this isn’t even getting into late fees or add-on charges.

3. Less Risk

Though it certainly still isn’t fun, losing your debit card has a much lesser negative impact than losing a big wad of cash. It is easy to quickly cancel or put a hold on your card if you have misplaced it or lost it. Most banks have a 24 hour hotline that you can call to do this.

It is also less of a problem if you debit card is stolen than if your cash is stolen. You can’t get cash back. You can oftentimes get any money stolen on your debit card back. Furthermore, you can always place a hold (in the same way as if you lost a card) when it is stolen. Finally, debit cards don’t attract nearly as much attention from thieves as a wallet full of dollar bills.

4. Cash Back

Another one of the benefits of using a debit card is that you have the option of getting cash back after you make a purchase. This basically means that you can make a small purchase and then receive some extra cash back for free. It is a much more convenient way to take out a little extra spending money than going to the ATM or the bank. Credit cards are not able to do this.

5. More Secure

Debit cards are also one of the most secure methods of making purchases around. They are far more secure than credit cards.

With a credit card purchase all that you need to do to finalize it is sign the receipt. On the other hand, a debit card purchase requires that you actually type in a personalized pin number. This prevents criminals from accessing your debit card and your money.


The benefits of using a debit card are numerous. If you are in debt or trying to save money, then you need to strongly consider one. Even if you are not in debt or struggling to save money, a debit card could be very helpful.

A debit card is basically an all-around safer version of a credit card.

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