A lot of credit card companies are changing policies. In August, the Citigroup announced annual fees for its credit card holders. In October, Bank of America followed suit by announcing an annual fees too for its credit card holders. Now, industry psyche points to aping behavior by other credit card companies. It looks like it won’t be long before most credit card companies will charge an annual fee. Apart from that with the government being strict with credit card companies regarding their fee policies you can expect their nefarious money extracting tactics to reincarnate themselves in other forms to squeeze out bucks from you. So do you think this is the time for you to shift loyalty to the debit card system of plastic money?
The rate of purchase of credit cards has increased in the last one year. Compare the dollars you’d have to pay for a Visa or MasterCard in comparison to the debit cards. As people are finding the credit card a less affordable option they are 
justifiably turning over to the debit card way of finances.
Usage of debit cards is nothing new. People have been using them in place of cash or checks. But their preference over credit cards is a newly observed trend. Of course, when the crediting companies are slashing the crediting amount, hiking their fees and denying new account formation altogether, you cannot help preferring the debit card to the credit card. But before you surrender your credit card to the issuing authority or close your account, consider certain factors so that you don’t get into hassles later.
Closing Credit Cards Is Not All That Easy
You might think that by closing your account by paying off the balance with your credit card company you may do away with it. But when you do that the total available score that you are using increases and that is going to damage your credit score. Its always better to keep your accounts open because you might want to sue them sometime. You may consider closing one account and opening another as this will keep your credit score intact. But then again, when you open a new account, the enquiry done on it will lower your score a bit. Even if you maintain a number of cards at 0 
percent balance, your account may be closed for inactivity. So isn’t buying some small affordable items on your credit card a better idea ?
Money Transactions Get Blocked When You Travel
Hotels, gas stations and even car rental companies block transactions on a debit card, till the verification process is over. On the contrary with credit cards you hardly face such a problem. If you want to access cash during urgencies using your credit card from your checking account, you’ll not be able to do so.
Apart from these less consumer protection and debit card pitfalls are the other disadvantages you face with your debit card. So, don’t be in a haste to do away with your credit card so soon.
