- Rental/security deposit - The business taking the money down for a car rental or home improvement equipment will actually take the money out of your account. You'll get it back when you return the car or equipment. With a credit card, the money is just "frozen" but not actually charged and you won't even notice its impact on your account.
- Restaurants/bars - There are too many prying eyes. Besides the risk of having your card stolen, restaurants are one of those places where someone actually walks away with your card and you don't see them for a few minutes.
- Regular payments - Businesses like to get your debit card number so they can extract dues straight from your bank account on a regular basis. It's better to use a credit card. In that way, if there is a dispute, the business won't be able to take the cash right out of your checking account.
- Wi-Fi hot spots - NEVER use your debit card for an online purchase while at a free Wi-Fi location. Many of these are unsecured wireless connections and it's much easier for hackers and scammers to log on and steal your data.
- Any retail outlet where you choose the "credit" option. Credit purchases cost the retailer more cash in swipe fees (you could be hurting a small business owner) and there is the factor of delay. You may forget the purchase and not account for the money and that could lead to an overdraft situation and the onerous fees that can go with them.
Protect yourself, protect your credit.
Shelly Guibert, Ben Goodwyn Agency 972.618.0100 shelly@bengoodwynagency.com
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