Credit Card or Debit Card: Reasons to Choose Credit

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Credit Card or Debit Card: Reasons to Choose Credit

If you’re like most people, you have access to both a credit card and debit. And for that reason, you have to decide when to use each one.

This sounds simple enough, but the wrong decisions can actually cost you time and money. Not to mention the fact that it can also add unnecessary stress to your financial life.

While there are pros and cons of both options, you should focus on what’s best for your particular financial circumstances.

For example, if you’re not responsible with repaying debt, you’re better off using a debit card. With this approach, you only have access to the money in your checking account.

Conversely, there are many reasons to use a credit card, including but not limited to the following:

1. Earn Rewards

There are many reasons to use a credit card, with this one at the top of the list.

For example, if you have a travel rewards credit card, you earn points for every dollar you spend. And once you have enough, you can redeem them for everything from hotel stays to airline flights to rental cards.

Tip: if you don’t have a rewards credit card, consider swapping out your current card for one of these. You might as well get something in return for the money you’re spending.

2. Easier to Manage

When you rely solely on your debit card, it’s a challenge to manage all your purchases. Every time you make a purchase, no matter how big or small, you have to record it. And if you make a mistake, it will throw your book out of balance.

This isn’t a concern with a credit card, as you’ll have easy access to information on your purchases via an online account.

As long as you aren’t tempted to run up a balance you can’t afford, you’ll enjoy the ease of management associated with a credit card.

3. Easier to Make Larger Purchases

Let’s face it: you only have so much money in your checking account. Furthermore, it may be earmarked for specific purchases, such as monthly utility bills and groceries.

If you want to make a large purchase, doing so on your debit card can be a challenge.

So, that’s why you want to use a credit card. As long as you have the available balance to make the purchase, it’s a piece of cake.

Final Thoughts

Some people only use a credit card. Some people only use a debit card. Other people use a mix of both.

Compare the pros and cons of both options to determine what will work best for you and your finances.

With so many benefits, you may come to realize that using a credit card is the best approach. This could be just what you need to feel better about your approach to financial management.

Which do you prefer to use, a credit card or debit card? Why?

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