Should You Use A Credit Card Or Debit Card?

Credit and debit cards are both widely used methods of payment. But when it comes to deciding which one to use, many people are unsure which is the better option. In this article, we’ll examine the difference between credit cards and debit cards, and help you decide which one is best for you.

Credit card or Debit card

What is a credit card?

A credit card is a payment card that allows you to borrow money to make purchases. By purchasing with a credit card, you are effectively borrowing money from the company that issued the card. You’ll need to pay back the amount you borrowed, plus interest and any fees, typically every month.

What is a debit card?

A debit card is a payment card that is linked to your checking account. When you use a debit card to make a purchase, the money is taken directly from your account. You can only spend the money that you have in your account, so you can’t go into debt with a debit card.

Advantages and Drawbacks of Credit Card Use


  • Rewards: A lot of credit cards provide benefits like cashback, points, or miles. This can be a great way to earn rewards for purchases you’re already making.                                                                                                                                                                                                               
  • Improve Credit: You can raise your credit score by using credit cards responsibly. If you make your payments on time and keep your credit utilization low, it can demonstrate to lenders that you’re a responsible borrower.                                                                                          
  • Fraud Protection: Credit cards often come with fraud protection. If your card is stolen or used fraudulently, you can dispute the charges and potentially not be responsible for them.


  • Interest and Fees: If you carry a balance on your credit card, you’ll be charged interest, which can be quite high. In addition, many credit cards come with annual fees and other fees that can add up.                                                                                                                                
  • The temptation to Overspend: Because you’re borrowing money, it can be tempting to overspend with a credit card. This can lead to debt that is difficult to pay off.                                                                                                                                                                                            
  • Impact on Credit Score: If you use too much of your available credit or miss payments, it can hurt your credit score.

Benefits and Drawbacks of Having a Debit Card


  • No Debt: With a debit card, you can only spend the money you have in your account. This means you can’t go into debt with a debit card.                                                                                                                                                                                                                                                
  • No Interest: Because you’re not borrowing money, there’s no interest to pay on a debit card.                                                                             
  • Easy to Use: Debit cards are easy to use and widely accepted. You can use them to withdraw cash from ATMs or make purchases in stores or online.


  • No Rewards: Debit cards typically don’t offer rewards like credit cards do.                                                                                                              
  • Limited Fraud Protection: While many banks offer fraud protection for debit cards, it may not be as robust as the protection offered by credit cards.                                                                                                                                                                                                              
  • No Credit Building: Using a debit card does not assist in the development of credit.

Which One Should You Use?

Whether you should use a credit card or debit card depends on your financial situation and spending habits. If you’re trying to build your credit or want to earn rewards, a credit card may be the better choice. However, if you’re trying to avoid debt or don’t want to pay interest, a debit card may be the better choice.

If you do decide to use a credit card, it’s important to use it responsibly. This includes paying your bills on time and minimizing your credit usage. You should also avoid overspending and only use your credit card for purchases you can afford to pay off.


The decision to use a credit card or debit card is a personal one that should be based on your individual financial goals and spending habits. While credit cards offer rewards and the ability to build credit, they also come with the risk of debt and high-interest rates. Debit cards, on the other hand, can help you avoid overspending and debt, but typically don’t offer rewards or as much fraud protection. It’s important to carefully evaluate your options and choose the card that best suits your financial needs.

Read More: How to Avoid Credit Card Interest Rates

Leave a Reply

Your email address will not be published. Required fields are marked *