Debit Or Credit Card Which One Is Best?

Using plastic to make big purchases and small purchases has become so accepted that it’s hard to imagine shopping with out it. Here’s you choice — Debit Card or Credit Card, which one is best?

Did you know that 2006 marked the first year that Debit Card use topped $1 trillion dollars? This fact proves many people are using their debit card, but are they better than your credit card? Here’s a rule of thumb on which one (Debit Card or Credit Card) you should use.

Which Plastic Is Better To Use – Debit Card vs Credit Card

Debit Card Use

If you carry a balance on a credit card than a debit card is possibly a best choice for you

If you have other debt problems/issues than a debit card is possibly you only choice

Credit Card Use

If you don’t carry a balance than a credit card is a better choice for you (explained below)

If your credit card does carry an annual fee than a credit card is a better choice

Here’s why Credit Card Use is recommended — Debit card transactions take the money directly from your account (ASAP), while credit card use allow you to earn interest on your money until the bill comes (which is around 30 days) — A whole interest cycle.

The second reason credit card use is recommended comes from a study of plastic usage — People who use debit cards are more like to overdraw their account. According to Consumers Union people using debit cards pay on average $223 per/year in bounced check fees. While credit card users only pay $40 per/year in fees.

The last reason credit card use is recommended comes in the form of protection. You have great protection with a credit card when disputing a charge, or if card is lost or stolen.

Debit Card vs Credit Card, While One Is Better

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