DEBIT CARD PREFERENCE OVER CREDIT CARDS IN NIGERIA
In my country, the use of debit and credit cards to pay for goods and services and also to carry out transactions has come a long way but the most common type used here is the debit card. While all these cards are both payment cards and looks exactly the same, a square shaped plastic card given to individuals by their financial institutions.
The major difference is that to use a debit card, you need to put some money or funds in your bank account, so you can pay for transactions. But for the credit card, you are at liberty to borrow money and use to transact while you are expected to pay back at the end of the month. Most people have incurred debt with this payment method that they set a limit to their credit card to monitor expenses.
ARE CREDIT CARDS COMMONLY USED IN NIGERIA?
NO, the use of credit cards in Nigeria is very limited but the almost every one has the debit card. Even the people that come to the banks and request for master or visa cards do not really know what they are used for. We still need more enlightenment and education in that area. For me I prefer the debit card.
Do they offer nice incentives to sign up?
No doubt, there are juicy incentives when it comes to using a credit card for payments, but personally using a credit card would mean that you have a stable and sustainable income monthly or else you would incure interest when the deadline elapses.
Some incentive that re enjoyed for using a credit card by the few includes: getting cash backs, travel point, bonuses and so on.
Do I PREFER CREDIT CARDS OR SCARED OF THEM
Not that I am scared of them but they seem risky, because it can lead to overspending and can also lead to the risk of potential long term debt. It could also be used for fraud. Imagine if I did not set a limit for the card, and a fraudster gets hold of it and hacks the password, they would practically wreck me and make me go bankrupt, even at that or as if that is not enough, I will still have to pay back at the end of the month.
One time, I knew someone that got the credit card and could not meet up with the monthly deadline payback, she complained bitterly of the high interest rate. So when you fail to pay the credit card bill, it is pushed forward to the next month with a percentage interest rate.
I wanted to go for the credit card back then but I realized the price range was different from a debit card and other incurable fees... I had to settle for my debit card.
With all that has been said, credit cards come handy especially when there are emergency stuffs to settle like hospital bills, insufficient balances and so on. I choose to stick with my debit, as there are no incurred interest or fees whatsoever, it is easy to use and convenient, it helps me to be accountable for all my spendings, thus budgeting comes handy.
This is my entry for #earnspendgive weekly prompt as organized by @terganftp. For more details check here.
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First: Thanks for joining out groupof people contributing here :)
Second: Thanks for following me .. always appreciate that :)
Third: I didn't realize that debit cards would be the way to go in Nigeria. Personally I'm wary of debit cards becauseI always worry if someone were to steal my PIN # I could lose all the money in my bank account which is typically higher than my credit limit on the credit card. and I always call to decrease my limit on credit cards. I had one card where they wanted to give me a $20,000 HBD limit to which I thought NOPE why would I ever want to get in that much debt that that high interest???
I set up a credit card for myself with a $150HBD limit. Enough for small purchases but not enough to get into trouble with. I set up a credit card for my son with a $15HBD limit :) Most people would go...seriously.... why so little? It's a little known fact that most credit cards allow you to pay more than you owe. If you overfund a credit card its like having a debit card but credit cards in Canada typically have more cashback and fewer fees than credit cards do.
But I'm writing too much.
When all I really wanted to say was thank you :)
I guess everyone goes with what works best for them, and my country is still developing in that area...
Thank you so much
I've looked at Nigerian bank websites and you have some exciting options you can't get in Canada. One that made me smile was the ability to get custom logo on the card plus prepaid cards with low fees.
I was just imagining a prepaid card with a HIVE logo or even #earnspendgive logo. What wonderful advertising or even gift.
Not possible here except with very large expense 😉
Your country may be developing and not there yet but I've found developing counties to be more flexible as they develop. But with developed countries they often become inflexible and change happens so slowly.
Either way... thanks for jogging the discussion ;)
You aren't writing too much, this is enlightening and that's the most important thing.
Haha. If writing post no problem. If writing a reply I should keep it short.
Then again you've been doing this longer and probably know your way around have better 😉
🤔
You explained the difference nicely. I agree with you about the credit card being used for emergencies to pay instantly. The debit card should be for other instances. It's better than carrying cash. Hopefully, soon we'll have the luxury of using crypto cards and get rid of the banks.
#freecompliments
Yes, it's way better. Thanks for your input
My pleasure always 🙏 have a great day.
Curated by #hivepakistan
Thanks for the support
Credit card thus pose alot of threat one must also careful not to get into debt from the too many interest rates charged .