Paying a huge chunk of money all at once to get a mobile seems a monetary burden at times. With flexible EMI options available from your bank, credit cards seem to be a feasible option when it comes to purchasing consumer durables. However, keeping in mind that credit comes with a liability to pay back, you may want to reconsider your payment options.
Why pay more?
While credit card rewards, cashbacks and loyalty points may disguise the offer with extravaganza, the real picture is however hidden. Credit card transactions involve :
- multiple interests
- taxes
- merchant fees
- security deposits
- card subscription fees
and, other components too, most of which go unnoticed until you receive your monthly statement. Even though this money is guaranteed by your bank, but it is you who has to repay.
The Safer Plastic
You may be aware about lots of offers and facilities that come with a credit card, but you may be not be aware about the benefits of the other type of plastic card – Debit Card. You may not be ready to spend a lot of money at once on your mobile purchase, but reducing the monetary burden off your shoulders seems to be a fair move.
Money and Human
Your propensity to spend more comes with possessing more funds. But here’s the difference. A credit card is an apparent representation of funds allotted to your name by the bank but is not yours whereas a debit card will hold the exact amount that is available to spend in your bank account. With a debit card, you do not have to worry about overspending, overdrafting and EMI payments.
Here are the top 5 reasons why you should consider your mobile purchase with a debit card.
1. Pay for what you purchase
Buying a mobile with a debit card rules out the possibility of your bank levying any hidden charge. When you receive a successful debit message post transaction, you are notified of being charged exactly the amount that you agree to pay or as advertised in your shopping portal. Your bank or the payment gateway may charge some processing fee which is negligible than the risks you carry with a credit card purchase. It allows you to keep a track of the funds that you are spending and, how much is left for you to spend and instils awareness of your personal funds.
2. No Interests
Perhaps the most important reason where one prefers a debit card over a credit card is Interest. Debit Cards are known to be interest free mediums as you are not indebted to the bank. You simply use your own funds in the bank account for the purchase you make. Furthermore, since debit cards are directly linked with your savings account, you are entitled to receive interests from the bank for proper maintenance of monthly or annual balance and check any unaccounted usage.
3. The Credit Trap
Credit Cards come with the Credit Trap. If you are not regular with your repayments or if you miss out on your EMI payments by even a single day, your credit score is hit. This is something you do not want to risk as your credibility as a loyal customer to the bank is solely judged by your credit score. A low credit score reduces your chances to avail loans from banks unless you have paid your dues in full and, have an acceptable credit score. Check your credit score for free here.
4. EMI with Debit Cards
Most banks nowadays facilitate availing EMI option even with a debit card. But that is subject to the fulfillment of certain conditions. With a Debit Card EMI option, the full amount of your purchase is first debited from your bank account. In a few days, your bank credits back the amount in your account and you have to pay back the amount to your bank in 3, 6, 9, 12 or 24 month’s tenure. A longer tenure requires you to pay back more than the actual amount. Debit Card EMI interest rates are competitive and lower than Credit Cards.
5. Feasibility and Time
You may not always be ready to carry cash as you go around. If you judiciously maintain streamlined budget plan, you can consider making your payments through Debit Card. If you are purchasing your mobile through Amazon or Flipkart, you can avail many rewards and offers for payment with Debit Cards. Do note that unlike Credit Cards, Debit Card offers are not only provided by banks but also by gateway services, portal discounts and other platforms too. Check out your most suitable Debit Card here.
You may now consider your best payment options and grab the best offers that are out there for your bank Debit Card.
