Are there good credit card & bad debit card charges?
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Written on: 12.11.2009 [11:04]
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Millie
Millie
Topic creator
Posts: 4
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My friend always pays his way using his credit card & says he wouldn't be without it, especially abroad. Apparently the charges he pays for using his debit card abroad are worse than those on his credit card: this goes against all the credit = evil warnings my Mum ever gave me! Are there really good credit card & bad debit card charges? |
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Written on: 01.12.2009 [15:54]
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Phillips
Phillips
Posts: 5
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Your mum probably told you that credit cards are evil because they make it easier to slide into debt than debit cards do... But if you are careful with regards to when you use your credit card, and make sure that you pay your bills on time, you'll find it can be a great financial management tool. Your friend may well be right if his bank charges him a currency conversion fee and a 'use abroad' fee for debit purchases. Some credit card companies charge one flat fee, say, one percent of the purchase amount, and this could well work out cheaper! For example, if you spend $200 on a credit card with that deal, this equates to €135 and you pay just €1.35 charges. If you spend $200 on a debit card, you may pay €2.50 'use abroad' fee PLUS the conversion fee... Make sure you read the small print of your card contracts so you know what you're paying before you make the purchase! |
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