The other day I published the article Should You Have a Debit Card Or a Credit Card? As you know, I prefer to use credit cards over debit cards. T
here are just so many more positives and benefits of using a credit card. However, I do know that some people prefer to stick to cash and their debit cards. That is completely fine and there is nothing wrong with that.
However, with a debit card, there are some places where you should not use it and stick to cash or credit card instead if you can. Below are places that you should be wary of before you take your debit card out to pay or withdraw money.
1. When renting a car.
If you are renting a car, it is usually best to use a credit card. Your credit card may even offer car rental insurance, but I would check with your specific credit card company to see if they do this. If they do, this can save you a decent amount of money at no extra cost to you.
Also, many car rental companies will charge you an extra fee and a deposit fee if you use a debit card, and this may be something that you forgot to budget in.
2. Booking a trip.
If you are booking a trip, some credit cards offer travel protection. This can save you a lot of money if something wrong goes on with your trip, such as bad weather, a serious illness and more.
3. ATMs that look fishy.
I remember watching a TV show that showed how past scammers would scam people. There was one episode where they put an ATM in the middle of a mall to see who would use it. The ATM obviously had a fishing widget attached to it, and yet everyone still used the ATM without any questions.
You should always make sure that the ATM you are using is one that is safe and secure. You do not want debit card fishers to have access to all of your debit card information and steal all your money. That would be a horrible disaster.
4. The gas station.
I have over drafted my bank account just one time in my life. It was when I was newly 16 and was filling up the gas tank in my first car. I didn’t have a ton of money, and most of my money was in my savings account instead of my checking account.
I only had a debit card at this time, and I didn’t know that the gas station would be a large hold on my bank account. I then had an over draft on my account because I went over by 16 cents because of the large gas station hold. I was so sad! I think I had to pay $35 for the overdraft charge.
However, if I would have paid with cash or a credit card, they wouldn’t have put that hold on my account.
Do you use your debit card at any of the above places? Why or why not?
Image via Flickr by Frank Hebbert