Credit Card Use Is On the Rise!

Until recently it was more common for people to use their debit card rather than their credit cards. However, this trends seems to be over as credit card usage has been increasing among consumers. Currently, credit card companies are trying to entice consumers to take out new credit cards. These companies offer things like reduced transcation fees, zero balance transfer fees and offering credit card rewards programs.

Why do financial institutions want you using credit cards instead of debit cards? The answer is pretty simple. They make much more money off of credit cards while driving you further and further into debt. On a typical debit card transaction the bank makes around 21 cents. On a typical credit card transaction the bank will make 2% of the total transaction. This does not even include the interest payments that credit card companies charge clients who do not pay off their entire bill.

So be careful on what you use when spending. Debit cards are always better than credit cards. And be aware that credit card companies are always trying to get you to run-up your credit card bill!

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