Jul 1 2011
Examples Of Credit Card Alternatives
Credit cards may be convenient, but they are also very costly. For those that would like the convenience of a credit card without the high costs involved there are many alternatives. Here are a few alternatives you can use.
Using Debit Cards
Debit cards have taken America by storm. Just like credit card without the high interest fees they are extremely convenient. Debit cards are credit cards that use your bank account instead of an unsecured loan provided by a credit card company. Debit cards are extremely easy to use, are usually accepted everywhere a normal credit card is accepted and does not charge any interest for purchases.
The beauty of debit cards is that they use your checking account making it easy to refill your balance. Many credit cards come with online banking making it easy to keep tabs on your balance and easy to transfer money from another account to refill your checking account. Debit cards usually are very economical and cost nothing at the point of purchase to use. A monthly or yearly fee is charged by some banks but these fees are typically low and cost effective unlike the high credit card interest fees.
For Online Purchases, Use Paypal
Paypal is a great payment option for those that shop online and you can use this instead of a credit card. Paypal is considered to be very secure because to make purchases online, it uses your bank account or even debit card. Your bank account or debit card account information is securely held on Paypal’s network so you don’t have to give your credit card number to a merchant. Paypal pays the merchant directly, this way you never have to transfer bank or card information to unknown merchants. Paypal is also free to use for consumers.
Gift Cards
Besides using a credit card, gift cards can also be used to make purchases. In fact, there are even Visa and American Express gift cards which can be used at practically all locations that accept these credit cards normally. The way these prepaid gift cards work is that you pay for a specific amount on the gift card upfront. This way you don’t have to pay any interest fees later on. Mostly used for holiday gift giving are gift cards but now, to teach their kids how to use credit cards wisely, many parents are using gift cards as tools.
With so many other alternatives, your high interest credit cards and the debt they can cause can be a thing of the past.
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