Credit Cards or Debit Cards – What’s the Smartest Swipe this Holiday Season?

Most people own at least one debit card and at least one credit card. Although it may not seem like it, there are many differences between the two.

Each time you use a credit card, you’re borrowing money. You’ll need to pay that money back to the credit union along with interest.

A debit card, on the other hand, simply transfers your own money from your checking account to the vendor you’re paying. The funds are taken directly from your account in a similar manner as using checks – only quicker. Some processing terminals will require a PIN and some will require a signature.

Both credit and debit cards are convenient, quick and easy. They’re also safer than cash, because cash cannot be replaced if lost or stolen.

Which card should you use this Holiday Season? The answer depends largely upon your lifestyle.

1.) Budgeting

Credit cards allow you to buy now and pay later. This is great when it comes to preparing for the Holiday Season. However, it can quickly turn into a budgeting nightmare. If you think you’ll be tempted to overspend, regular credit card use may not be ideal for you.

2.) Safety

With increased card usage during the holidays you may be contacted by the Fraud Center to verify unusual shopping patterns. This goes for both debit and credit cards. We highly recommend that you verify and update your contact information with RCFCU. Having correct information such as address, phone number and email is essential to account security.  To update any recent contact changes you may do so through rcityonline and rcitymobile.

3.) Credit History

Credit cards help establish or restore good credit. Occasionally using a credit card and paying your bill on time can really improve your credit rating. This, in turn, improves the likelihood of earning favorable terms for home loans, auto loans, personal loans and more.
As a River City FCU member, you already have access to fantastic rates and optimal security. To find out which debit or credit card is best for you, call our Member Service Center at 210-225-6866, or stop by your nearest branch today!

Happy Shopping Days!



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