What is a cheque card?
A cheque card is a form of debit card. Transactions go through your cheque account and you can only use the money available in your account. One of the many benefits that come with owning a cheque card is that you don’t have to borrow money to be able to use it. It allows you the convenience of helping to prevent you from falling into a debt trap.
When you own a credit card, transactions are subject to your credit limit. A credit card limit provides you with a line of credit. It gives you the flexibility of being able to make purchases without having cash on hand.
You are required to make a minimum payment each month on what you owe.
Owning a credit card can be a good way of building and maintaining a good credit record. As long as you pay your balance in full each month on time, your credit score won’t suffer. Another major draw factor in terms of credit cards is the rewards programme that comes with different cards.
Credit card vs cheque card comparison:
Making payments with your cheque card is simple and convenient. You can use your card wherever you see the Visa or MasterCard signs. You also don’t have to have a good credit record to qualify for a cheque card.
Overspending is easier when you own a credit card. The illusion provided by a “buy now, pay later” mentality as a credit card owner makes it much easier to spend more money than you actually have. Owning a cheque card limits you to spending the money that you actually have in your account and you can avoid being saddled with exorbitant interest charges.
Online shopping is more convenient when you use a credit card and buying big-ticket items is easier because you can pay them off over a period of time.
Making the choice between credit card vs cheque card depends on how much you’ll be spending as well as how you’ll be using your card.
