I'm sorry if this question seems a duplicate of another (likely this), but my situation is actually a little different.
My situation is that, I have a debit card from a bank I find convenient but seeing the popularity of credit cards these days, I'm wondering if I should really get a credit card.
- Debit card has a chip and a magnetic strip. Can be used in both types of POS machines.
- Bank gives me a 5% interest rate per year, regardless of the number of purchases and withdrawals I make.
- Online banking facilities, instant online statements, and SMS alerts are offered for an annual fee, which is the same if I got a credit card.
- I can withdraw money overseas for a small fee, and foreign POS transactions are free.
The credit cards, however, come with some offers and interest-free payment schemes. - There is an annual fee, and the interest rate (after the grace period) is extremely high. - Stamp duty, money withdrawal fees, etc are applied too.
Is there any reason to go for a credit card anyway? I'm sure I can pay off the debt before the due date, but annual cost is just an added expense. Is it really worth it to get a credit card? Are there any benefits I'm missing?