This has been debated before and there are pros and cons to both types of cards. Let’s take a look at both cards, but before we do, a lot of what is in this article depends on your own self-control. If you can control your use of credit cards then what you read below applies. If you can’t control your use of credit cards or you think of credit cards as cash, then you should lean more towards debit cards in most purchases.
I will start by asking what might be obvious to most: Did you ever wonder why when you open a new checking account the bank falls over itself giving you a debit card? That is because this card is tied directly to your checking account and in some cases your savings account also. The bank makes a large amount of money charging for overdraft protection and on overdraft fees just to name a couple.
When you try and get a credit card you must fill out a credit application and depending on your credit score the issuing bank or financial institution might send you a card. If they do a credit limit will be attached, which means you cannot charge over that credit amount. You will get a bill once a month that should be paid within the terms.
If you have a dispute with a merchant both types of cards offer a way to resolve that dispute. With the debit card the merchant usually already has your money. With a credit card many times the card company will freeze the amount in dispute until resolved. This means that the merchant does not have your money. Let’s say that you charge a vacation through a travel agent and that company goes bankrupt before your vacation begins. With a debit card the money is taken from your account almost immediately. The bank will probably put your money back into your account, but it could take some time. With a credit card nothing is taken from your account.
In the case of your card number being stolen, you are protected with both types of cards, however in the case of a debit card it could be weeks before your money is put back into your account. With a credit card you simply don’t pay those charges.
As I said in the beginning of this article if you can control your use of credit cards, then professionals would say that they offer you the best protection.