Credit Card or Debit Card-Which One Should I Use
Close-up of a person using a keyboard while holding a card
You may think a credit card and debit card are the same thing. At least they look alike in your wallet, right? While they do look alike, there are key differences to consider.
To help you stay money smart and keep track of your purchases, here are two questions to help you decide which one to use:
- Do you have the money to pay?
- Do you have a repayment plan?
Credit Cards
Only use your credit card when you know you will be able to repay in a short amount of time (e.g. by your next credit card bill). If you will not have all the funds in the bank by your next bill, work out your repayment plan before you purchase.
- Travel Expenses
- Online Purchases
- Large Purchases (washer, dryer, TVs)
Debit Card (or electronic check)
Use your debit card when you know you have the funds in the bank. If you overdraw, your credit score could suffer, and your account could be closed.
- Bills (even if online)
- Everyday Purchases (groceries, dinners, etc.)
- Movies, Clothing, Games, Gifts, etc. (small extras that fit into your budget)
