Debit and credit are the same but different. There really is no way of deciding which one is better. It is a matter of personal preference. The biggest question to ask yourself when deciding which is better for you is whether you want to pay now or later. If you opt for later, make sure you will be able to afford what you “charge”.
Debit and credit cards are very different but have several common factors. They can be used to pay for goods and services. They can both be very convenient when it comes to always having emergency cash on hand. They are both small and easy to keep up with.
A debit card is like a paperless check. The money you spend on that card will come out of your checking account at your bank. In most cases, you can only spend what you have in the bank. Some banks offer overdraft protection in case of accidental spending, though. You can use your debit card to draw money out of an ATM anytime day or night.
A credit card is a promise that you will pay later. You will have a monthly bill. (Unless you choose another option.) You will have a set amount to pay or you pay have to pay it all at once. Each company has different regulations and it is best to read the fine print before you agree to anything. A credit card is not “free” money. You are responsible for paying it back. If you do not, legal action can and will be taken against you. If you have no way to pay later, then credit is not a good idea.
To use a debit card, you must put in a four-digit pin number. The bank will allow you to pick the number that you want to use. You are also free to change it at anytime. With a credit card, you must sign the receipt that you are given. Your signature must match the one on the back of your card. It is your promise that you will pay.
Fees are possible in both cases. Credit card companies usually charge fees to “charge” your products. They may also charge annual membership dues and other financial fees. Debit cards don’t generally cost through that particular bank but at other ATM’s and some direct sale places there may be a fee attached in order to use your card.
There are some instances when a debit card can be used as either. The money will eventually be taken from your account. It just doesn’t happen that moment when you run it as credit. If you run it as debit, it happens as quickly as possible. As mentioned above, the only difference is signing a piece of paper or putting in a number at the point of sale.
Debit and credit are both convenient but which is more suited to your lifestyle? Think about the safety of your pin number and your memory. Would you rather sign your name? Do you like knowing you have the money right then? Would you rather pay later? The one you prefer is the one that is best. Decide your priorities and mold it to your lifestyle. Then, you will have the answer that applies to you.