Wednesday 18 July 2012

International Debit Card Truths - Finance - PersonalFinance


The global financial crisis has overwhelmed the economies of all the countries of the world, nearly causing their complete meltdown. And as the economy seems to be heading down the drain comes the advent of international debit cards which continue to gain tremendous popularity.

International debit cards are regarded as the best things since credit cards. And it has just been confirmed that debit card transactions already exceed credit card charges since the final quarter of the year 2008. The consumers growing desire for better financial control is said to be the key driving force of the great amount of international debit transaction gains. The international debit card draws cash directly from the holders won checking account unlike credit cards which purchase by loans that may be carrying very high interest charges. In other words, international debit cards pose no threat of accumulating huge debt and incurring great interest costs.

The harsh environment brought about by financial crash has greatly urged the need to avoid excessive interest payments and has contributed much to the growing use of international debit cards. The Minimum CC Payment calculator downloadable through the Internet clearly shows just how big credit card interest charges can be. It should noted though that the use of international debit card also has risks, though these risks through proper information and caution can easily be overcome.

One of the most commonly brought up risks of using international debit cards is associated with the fact that the protection against unauthorized use of international debit cards is somewhat weaker than that of credit cards. Under federal laws, the cardholder is liable for no more than $50 in unauthorized transactions on a credit card. With a debit card, the $50 limit holds only if you report the card missing within two business days. If you dont, you could be liable for up to $500 in losses, or for unlimited losses if you get a statement showing the unauthorized transaction and wait more than 60 days longer to alert the bank. The said problem can easily be solved by safekeeping your international debit card as if it was cash.

The use of an international debit card also does not help the cardholder build up credit history and have a good credit score because a debit charge is not a loan. Credit score is important as it will be what determines if you will be granted any loans in the future. People build good credit scores by making on time mortgage and car loan payments, but it also makes sense to continue using a credit card for a few charges to maintain a flawless payment record. The best use for an international debit card in enhancing credit score is using it to keep ones credit card use well below the limit. The Payoff Credit Card calculator also downloadable in the Internet will help illustrate how an international debit card can help clear away credit card debt.

Since using international debit cards is cheaper than using debit cards the rewards international debit card providers offer to their holders tend to be much less generous than those of credit cards. Though most people think that the difference in rewards is nothing compared to the difference in annual charges, interest costs and late payment costs in which sense makes international debit cards better than credit cards.

Get the 2-GetCash international debit card now and enjoy the benefits of a great debit card without all the added charges.





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