Why I Went From Credit to Debit
September 13, 2013 1 Comment
I have a startling confession to make. Up until recently, I was a heavy credit card user, and it wasn’t an OVB credit card. Boo! Hiss! Snarl! That’s the sound of certain members of my OVB family coming to take me out. The fact is, I received a credit card from an unnamed national credit card company prior to my employment with Ohio Valley Bank and just never switched over. I was receiving 1% cash back, I was able to pay for everything a month later (more on why that’s a negative below), and I had just gotten in the habit of using it.
Recently, however, I made the jump from a national credit card to a local debit card. Why? Well I’ll tell you!
It’s easier for me to budget when the money comes out of my account right away. Sure for the first month of paying with a credit card it might be easier to pay a month later, but after a point it really isn’t any different from paying now.
You see, I paid my credit card off at the end of every month. I don’t like paying interest. So when I made a purchase on my credit card today, in my mind and in my budget, that money left my bank account also. I was just adding an unnecessary step and time to the process, which makes it easier for mistakes to happen. I should also mention that when you have the ability to make less than a full payment, the temptation to carry a balance is always there. What’s a little bit of interest when you can get those sweet new shoes or that awesome new tablet? Next thing you know you are in a vicious cycle of paying the minimum payment on a whole lot of credit card debt. That’s why I feel it’s easier to budget when using a debit card.
One reason I hear quite often for using a credit card is the rewards, I’ve used that excuse myself. Many credit cards, including the one I had, offer cash back rewards on purchases. Well guess what, so does OVB! We go one step further and offer it on our checking account. OVB is one of the only local community banks to offer a rewards checking account.
One of the reasons I switched from credit to debit is because I could earn up to 1% cash back, just like those national credit cards. Even better than those guys, however, is that I don’t even have to redeem the reward. It just shows up in my account at the end of every month. For details on how you can receive 1% cash back, click here.
Supporting Local Business
Yes, I am biased, but I would much rather support a local company than a national one. If you live near an Ohio Valley Bank branch, that means you live in a pretty specific place: southeast Ohio and western West Virginia. Well, OVB employees live in the same place as you. We eat at the same restaurants, send our kids to the same schools, and shop at the same stores. We are your local community bank, and we are trying to make a difference in your community. If you could choose which business to support, wouldn’t it be a locally owned community bank rather than a national bank or credit card agency?
There you have it. That’s why I switched cards. Everyone’s situation is different, but I think those are some pretty compelling reasons to give your local bank a chance.
A Word on OVB Credit Cards
This piece was written from the perspective of someone who does not carry a balance on his credit cards and therefore doesn’t pay interest. However, I realize that there are a lot of people out there that do carry a balance for a multitude of different reasons. I have good news for those people: OVB’s Visa Rewards credit card has one of the lowest interest rates you will find. Typically it’s almost half the interest rate you will pay on a national credit card. That’s a lot of money when you are carrying a hefty balance. For more information on OVB’s Visa Rewards card, click here.