Personal Finance

Why You Should Use A Credit Card Instead of A Debit Card

Credit and debit cards allow you to save money on your purchases. But have you ever noticed that when your wallet is empty, you prefer to pay with a debit card, and when your bank account is depleted, you switch to a credit card? But did you know that using an online credit card from the start can help you save more money on your expenses than using debit cards?

Unlike credit cards, debit cards have a slew of advantages, but it’s difficult to beat the savings you can get with the right credit card. Before we go any further, it’s important to understand the difference between debit card and credit card and how they work. Let’s take a closer look.

Difference Between Credit Card And Debit Card

What is a credit card?

A credit card is a metal or plastic card issued by a bank that enables customers to borrow money for purchases. Cardholders must repay the money to the financial institution within the time frame specified. Otherwise, the card company will charge you a high-interest rate for your late payment.

One of the primary distinctions between an online credit card and a debit card is that neither requires a bank account. The Best Credit card is available in various categories to meet the needs of different individuals.

What is a debit card?

Debit cards function similarly to credit cards, but they are directly linked to your bank account. This essentially means that whenever you make a transaction, money is deducted from your linked bank account. As a result, in order to obtain a debit card, you must have a savings account with a bank.

Debit cards, like credit cards, can be used for both online and offline transactions. In short, a debit or ATM card allows you to access the funds in your account whenever it is convenient for you. The best credit card allows you to borrow money from the card provider and repay it, whereas debit cards allow you to access funds in your account.

Given that debit cards now provide similar benefits or privileges as credit cards, credit cards are considered to be safer for all transactions than debit cards.

Aside from security, there are a few other reasons why credit cards are preferable to debit cards, some of which are listed below:

Increasing credit

Credit must be used in order to be obtained. While this may appear to be unfair, using credit responsibly in the micro sense (credit cards) results in a higher score, which can then be used to leverage credit for larger purchases such as a house, car, or business loan.

When you use your online credit card and pay it off on time each month, you significantly improve your credit score.

If you want to improve your credit, you should consider getting a secured credit card. Secured credit cards are available to those with poor or limited credit histories, making them ideal for those looking to build credit. Using Credible, compare these cards.


Most credit cards provide fraud and purchase protection, as well as some level of separation from your bank account. Because debit cards are directly linked to your bank account, the possibility of fraud increases. For example, if a thief steals your debit card and uses it to make a purchase, the money will be deducted from your bank account regardless of whether you initiated the transaction or not.

Forex commission

If you frequently travel abroad, credit cards can be an ideal travel companion. When you use a debit or credit card to make a foreign currency transaction, the bank charges a forex markup fee. Although debit cards can be used to make international transactions, there are credit cards available on the market that have a low forex markup fee.

Reward or cashback advantages

Although debit cards provide rewards or cashback, credit cards are a preferred method of earning such benefits. This is also because credit cards provide more benefits than debit cards. However, you should keep in mind that credit cards usually have an annual fee, whereas debit cards do not.

However, finding the right credit card for your needs and spending habits can be difficult. To get the most out of your card, you should always choose one that fits your lifestyle. Credit cards provide additional discounts, bonus reward points, free tickets, complimentary memberships, and much more in addition to rewards or cashback.

Summing Up

To summarize, credit cards outperform debit cards in terms of savings and other benefits. Taking advantage of the best credit card benefits is one thing, but using it responsibly is another. So, if you already have a credit card and know how to use it well, try to make the majority of your purchases with it to reap the most benefits.

Best Credit Cards For Dining.

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About the author

Sophia Britt

My name is Sophia and I live in the suburbs of Chicago. I offer real world experience to readers on how to save and smartly spend their money. Plus offer advice on organization, career, business, travel, health, home, education and life.