Using a debit card might seem convenient, but it can expose you to various financial risks and missed opportunities. This article outlines five key situations where using a debit card is not advisable: restaurants, gas stations, hotels, car rentals, and large purchases. At restaurants, debit cards can lead to tip discrepancies and missed rewards, while at gas stations, they may trigger large holds on funds and expose you to skimming fraud. Hotels often place hefty holds on debit accounts, and car rentals can complicate your transaction with additional checks and holds. For large purchases, debit cards lack the purchase protections and financing options that credit cards provide. Instead, using a credit card can offer rewards, fraud protection, and better dispute options. However, the article also notes that debit cards are suitable for cash withdrawals, rent payments, and supporting small businesses. Understanding when to use each card type can help you manage your finances better.
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