Debit Card VS Credit Card


When it comes to knowing which is best payment solution when it comes to Debit Card VS Credit Card it’s best to weigh the options.  

When it comes to travelling most credit cards are accepted around the world whereas certain purchases are difficult to make with a debit card. Rental car companies and hotels want customers to pay with credit cards because it can be easier to charge customers for any damage they cause to a room or a car this way. 

Also many credit cards offer significant rewards when used responsibly of a reward point system. This offers up a large number of points that can be redeemed for rewards like gift cards or air travel. Whereas the standard debit card offers very small or zero rewards.  

When building your credit history credit cards when used responsibly improve your credit score. As credit card companies report your payment activity to the credit bureaus, whereas debit card use doesn’t appear anywhere on your credit report.  

And a high credit score can also mean you pay an interest rate several points lower on insurance or loans of home or car than the rate someone with a poor credit history would pay; saving you money over the life of the loan.  

But even though people say credit cards are good because you can use them to pay for phone or online purchases the same can be said for a debit card, which accesses your own funds and you don’t accrue a balance on which you need to pay interest. 

With a credit card it’s easy to purchase anything you want, even if you don’t have the funds. With debit cards, the money comes directly from your bank account, so you avoid spending more money than you have. Plus, you don’t have to remember to pay the credit card bill once a month. 

Also when it comes to liability for fraudulent purposes credit cards, offer liability protection unlike a debit card it can get a bit risky. Because when you use your card you’re personally liable for the transactions due to PIN authorisation to gain access to your account. So if your card is lost or stolen, you may not have much protection from fraudulent charges, although some banks do offer protection if you notify the bank immediately.


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