Credit and Debit cards are also known as plastic money as you do not have to carry cash all the time with you. Before you read further we shall like to advise you that if you are in a phase of rebuilding credit after bankruptcy then use the credit cards carefully. Here are some ways to use these plastic cards to make your life easier.
1. Payments to Shops: With both cards you can pay in stores. As mentioned above the main difference is that with your credit card you do not need to have the money you need to pay because the payment is made the month later (for example when you know that your salary will be credited for the month). With a credit card you can go in red and spend more than you have in the bank at a given time. With the ATM no: If you have money you pay if that’s not enough you refuse.
2. Online Payments: In general terms you can pay online with a credit card and a prepaid recharge but not with an ATM. But be careful because in some websites you need a credit card for example with many hotel vacation travel etc. travel sites. With regard to online security it is best to always use credit cards to make purchases on the web because they are easier to lock in case of identity theft or cloning; instead for ATMs the way to go is more complex.
3. Payment: If allowed with your credit card you can pay more monthly installments for your purchases. In many countries in the world (North and South America above all) you can pay a credit card with any purchase even for very low figures. In Europe the situation is more “controlled” with the aim of protecting the customer but in some cases household appliances and other goods may be charged. Better consult with your bank about it.
4. Cash withdrawals: With both cards, you can withdraw but there is an advantage with the ATM: with credit cards, there is always a commission to withdraw (sometimes more than 2%) while the cards of Debt withdrawals are free throughout the EU. Please note that with some banks the withdrawals are free only at ATMs in the same group. Consult with your bank before withdrawing from an ATM other than your own. For more information read our recent observatory How much does it cost to withdraw and pay abroad with paper?
To check your credit score after bankruptcy consults a reliable credit repair agency who can also guide you in regaining credibility.