Should I always use a credit card instead of a debit card?

Checking Credit Card

Most people start their ‘card journey’ with a debit card, as this option gives them direct access to money in their checking account. And this is not a surprise, after all, considering that this type of card has a few specific advantages over a credit card, the main one being that they don’t allow consumers to rack up debt with ease.

However, a debit card shouldn’t be your first option when paying! Instead, opt for credit cards for the bulk of your purchases. And below you’ll find the main arguments supporting this.

It’s way safer

Even though the security measures have been significantly improved over the past years and the gap has shrunk, we can still say that credit cards have an advantage over debit cards.

“If somebody gets hold of your debit card information and uses it fraudulently, they’re stealing real money out of a real account,” says credit card expert Matt Schulz. On the other hand, it your credit card information gets stolen, money isn’t being taken directly out of your account, hence the reason for considering these cards safer.

It helps you build your credit score

Moving on with the advantages credit cards have over debit cards, they are great for helping you build your credit score. As long as you pay your balance in full each month, of course. In contrast, debit cards don’t offer such perks.

This can be great for anybody who wants to access other financial products later, as we all know how important the credit score is for lenders if you want to obtain financing for a new car, a mortgage and many others.

Nevertheless, use what you’re comfortable with!

Sure, the two arguments in favor of credit cards presented above should be enough to convince they’re better than debit cards but, in the end, there’s nothing wrong in paying with debit at all!

If you just don’t feel comfortable with having a credit card, due to various reasons, and carrying one can generate what we call financial stress, you should continue sticking with debit.

As a side note, debit cards can be great for saving money at some stores, knowing that surcharges on credit cards are becoming legal in multiple states!

Credit card interest rate