Debit Card Perks Rival Credit Cards

If the only reason you hold a credit card in your hip pocket or your purse is to capitalize on some of the rewards programs that credit card companies offer their best customers, you may soon be able to cut the ties that bind you.

Increasingly, Visa and MasterCard, the two largest issuers of credit cards in the world, are expanding the range of services they offer to include some of their largest bank customers. They aren’t being entirely altruistic, however. The simple fact of the matter is that customers are growing increasingly hostile about carrying credit card debt or getting slapped with punitive default interest rates for paying another creditor late and getting popped for multiple fees for everything from balance transfers to receiving duplicate statements.

Picking up on this trend, large financial institutions and financial brokerages such as Fidelity Investments are meeting this newfound consumer demand. Now there are debit cards tied to checking accounts that will give consumers cash back, waive or reimburse for ATM fees, offer extended warranty protections, etc.

The major drawback to debit cards has traditionally been the need to have money in hand – or at least in your account – when you make a debit card purchase. With a new emphasis on trimming debt payments, banks are turning the tables on credit card companies and using this as a selling point.

If you don’t trust yourself with plastic and you can ensure that you always have cash on hand to cover your debit card purchases, this might be an ideal time to grab a pair of scissors and cut your credit card in half. If you do, don’t forget to inform your credit card company that you’re severing the financial ties. It’s not enough to silently do the deed. You have to let them know. Remember, severing financial ties with your credit card company can be a lot like cutting down a tree in the forest. If nobody is there to hear it fall, did it make a sound?

Are you ready to silence your credit card company? Or are you going to keep a credit card around for old time’s sake?

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