Debit Card or Credit Card

Posted by Grace under Credit Card on July 28, 2015

While I am planning to buy a new gadget online like iPhone, I decided to use my Visa debit card rather than my credit card. Well, it is just to make sure that my credit card information will not get stolen. Many times, when I renew every year or every three years, I use my debit card.

Now, I will emphasize that using a debit card or cash is better than credit card when paying for something in the department store, groceries or supermarket.


But, what is the difference between a debit card and a credit card. Maybe you know how to use them but the question is, do you the difference of these two cards?

Debit Card is simply a prepaid card. You can’t use it without funds in it. You can deposit money in your debit card in the bank from where you opened it. You can use a debit card anytime. You will only know that your card can use in a specific store even in an online store if there is a Visa Logo or MasterCard logo.

  • You can buy things online with a debit card
  • It is safe than credit card for financial security reasons.

While on the other hand, we have a credit card. You and the bank has an agreement. You apply for a credit card, you fill out the form, you agreed with the terms and conditions, you are aware of the interest rates. But, how does having a credit card can be a beneficial?

  • Credit card is useful during emergency cases
  • It is quiet risky compare to a debit card.

Important: It is advisable to build your emergency funds. Use this funds whenever emergency cases arrive.

If you will use your credit for purchasing you don’t really need, you may end up in financial trouble. Our goal is to achieve financial freedom, not to have a huge debt. FYI, improper using of credit card can is dangerous to your finances.

A friend of mine is asking, will you still use debit card or cash if you want to buy something immediately? Of course if you have cash, you don’t have to use a debit card. Some stores allow to receive payment using ATM card. This will be okay if you know you will use your cash for some reasons.

Debit Card or Credit Card Abroad

I prefer to use a debit card when I travel abroad. This is to ensure that I won’t dealing any incorrect credit card bills. If you will use a debit card rather than a credit card while you’re abroad, you can save a lot of money since you will never fall into impulsive buying.

If you’re traveling abroad, make sure you fund your debit card enough money to avoid inconvenience. Or just convert your currency while you are in your own country. Example, if you are living in USA and wants to travel in London, make sure you convert your dollars into sterling pounds. However, handling cash on hand while traveling is very risky. You better use a debit card.

Summing Up

It’s up to you if you will use a debit card or credit card when purchasing online. In my experiences,  I didn’t get any trouble in dealing with any bank because I just use the money I deposit to my debit card and use it anytime and anywhere.

What about you? Which one do you prefer? A debit card or a credit card? Do you have experiences in dealing incorrect bills? Did you experience traveling abroad using only credit card? Share your experiences below. Thanks!

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