The use of credit cards for our daily transactions is convenient and can provide consumer protection. We all know that credit cards can be useful, but they aren’t for everyone. A good credit score is usually required to be offered a credit card with a reasonable interest rate. Others may prefer to avoid the temptation that comes with a credit card to avoid getting into debt and paying interest or fees. So what are your options if you don’t want or can’t get one?
Debit cards
A debit card is the most popular alternative to a credit card. If you don’t want to use your credit card and want to spend money online or elsewhere, a debit card can provide convenience and some consumer protection you need. However, unless you have a pre-arranged overdraft, it will not allow you to spend money that you do not have.
You can also charge back on certain unsatisfactory transactions via their Chargeback feature. This is a process in which your bank reverses the transaction; however, there is a time limit on when this can be done, and it is not always a quick process.
Apply for a Short Term Loan
You may be eligible for a short-term loan based on your credit history and the reason you require a credit card. This is not the same thing as a credit card.
It offers a lump sum that is repaid over time. However, quick loans can be a more affordable option for making a large purchase. You will also benefit from the elimination of unnecessary temptation to spend while you repay the balance. This alternative is generally less expensive, especially if you can secure a favorable interest rate.
Online Wallets
Online wallets such as Paypal and Skrill are the most popular online alternative method. Sites like Paypal typically provide some level of consumer protection to assist in the event of a dispute, but it’s best to double-check what’s in place before you begin spending. PayPal is used for transactions by many consumers and businesses. It’s growing in popularity as larger retailers like Home Depot allow customers to pay with their PayPal account. An added perk to using this method is that you don’t need to provide personal information to individual vendors aside from linking your account to the payment system.
Finding a credit card alternative isn’t as difficult as it sounds. Sometimes the most straightforward options are the most feasible.