Debit Card vs Credit Card

Credit card used to be a luxury stuff. Anybody who owns a credit card is considered rich and successful. Back then, only a handful is qualified to have that as the criteria to obtain the card is so complex. That is why credit card is one of the 5Cs in order to be considered successful, in Singaporeans point of view.

However, recently, due to intense competition and also global recession, many banks and financial institution issue more credit cards. The criteria for credit cards have been relaxed too. So everyone can have one.

On the other hand, debit card is something new recently. The debit card issuer claims that with debit card, you need not bring much cash and the risk of losing money is reduced. Furthermore, many strategies have been applied by them to encourage usage of debit card. Due to that, many people applied for debit card. It seems that it is cool to have a debit card nowadays.

But there are debates about the above 2 cards. Some said credit card is good because you can use it during emergency compared to debit card, where you can't use money you don't have. The debit card fans, however, said you won't be in debt if you use debit card compared to credit card where you will end up in debt at the end of each month.

Whether good or bad, I think we should have both. Use credit card if you really need it especially emergency. You may also use it to roll the money around should something happens to your business. Debit card is used to reduce the risk of losing money as well as getting more savings with that.

Hence, i recommend BOTH, Debit Card and Credit Card. :)