Should you use a debit card or a credit card

The main difference between Debit and Credit Cards

Debit Cards

How debit cards function

  • It’s very difficult to go into debt using a debit card — unless you’ve got an overdraft program, you’re not going to be able to spend more than you have.
  • It’s very simple to get a debit card — if you have a bank account, the chances are that you already have a debit card.
  • Debit cards are easy to use –unlike credit cards, debit cards are much simpler to use.
  • Debit cards are directly linked to your bank account — if your card details get stolen, your account is likely going to be at risk.
  • Debit card disputes can be difficult to settle — debit card disputes are much more difficult to settle, as you’re dealing directly with your bank.
  • There’s no “debit score” — unlike credit cards, a debit card doesn’t come with long-term benefits down the line.

Credit Cards

How Credit Cards Function

Credit Card Pros and Cons:

  • Credit cards allow you to build a credit score — if you plan on using large sums of money in the foreseeable future, you definitely want a solid credit score
  • Credit cards often come with additional benefit programs — some companies offer cashback, others offer with flight tickets.
  • Credit cards are convenient — when you’re looking to make a big purchase, a credit card backed up by a solid credit score is your best bet.
  • Unexpected expenses and emergencies — when the unexpected happens, you can always fall back on your credit card. Just remember to pay back in time.
  • Being late can hurt your credit score — if you don’t manage to stay on top of your payments, your credit score is going to take a hit.
  • Interest and fees — just like debit cards, credit cards come with their own fees for using the service. On top of that, however, delaying your payments will incur interest that you’ll need to pay off.
  • It’s easier to spend more than you can afford — if you’re not good at managing your finances, a credit card can make things much easier to control

In closing



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Antoaneta Tsocheva

Antoaneta Tsocheva

Entrepreneur and eco-friendly enthusiast. I’m on a green mission to clean up the way we live. Share the passion — follow my journey now!