In need of a credit or a debit card? Then you should know that, at the moment, opening a new debit or credit card is getting more and more expensive as the days goes by.
The use of debit card is declining in the U.S. according to recent reports by ValuePenguin, since the year 2013, the total percentage of most household around the states using debit cards has decreased from the previous 74% to nearly 55% in comparison to another form of payment, such as the credit card, mobile, and online banking. According to the reports and the analysis done by ValuePenguin, it shows that nearly one-third of households use a credit card in paying bills as compared to the last 5 to 6 years ago.
Hawaii, New Jersey, and Connecticut are states among which there has been the greatest drop in usage of the debit cards. On the other hand, North Dakota and South Carolina have only about 4% of all the households having completely stopped using this debit card as a payment method.
Why prefer credit cards to debit cards?
According to recent surveys by ValuePenguin, most people prefer using credit cards in the U.S to debit cards. According to them, credit card offer services which debit card doesn’t, this includes enticing perks and more so cash rewards.
The CNBC, Chase Freedom card is the number 1 pick when it comes to cash credit back card, with this freedom card, you can earn up to $1000 every year. Meanwhile, the runner-up, the Chase Sapphire offers the best traveling card which can save your other perks, offers and money alongside lounge complementary access in 1000 airports and more all over the world.
Now, credit-card debt is highest in the Americans
According to Federal Reserve records and reports, the credit card debt of Americans has hit the disturbing peak of $1.02 trillion. According to American users, credit card offers extra protection measures. Reports from ValuePenguin says that “in case of theft or fraud, your credit card expenses can immediately be canceled whereas, for the debit card, this figure reflects immediately in you (user) bank balance.”
And finally, avoid shopping with plastic if you need to be a very conscientious consumer since most small shop and business pay extra money when it comes to processing of these credit card transactions and that may end up messing their profits.