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Pros and Cons of Debit Card vs. Credit Card

July 25, 2022

To know whether you should use a credit card versus a debit card, you need to consider your spending habits and understand the difference between a credit and debit card.

 The Pros and Cons of each are below:


            DEBIT CARDS

            Pros                                                               Cons

            Interest free                                                    Does not Build your Credit

            No Annual fees                                               Possible Overdraft Fees

            Can help with Budgeting                                Limited fraud protection

            Convenient & Widely accepted                      Spending Limit depends on account balance


            CREDIT CARDS

            Pros                                                               Cons

            Short-Term Financing Option                         Danger of Overspending

            Can build Credit History                                 Interest Payments

            May offer Cash Back rewards                        Late Payment Fee

            Strong Fraud Protection                                 Can Hurt Credit Score


Debit cards are ideal for everyday purchases.  You can easily track spending. They are also a helpful way to build strong spending habits.


Credit cards can be helpful to build credit. If you trust yourself to spend wisely and consistently make on-time payments, they can be a great option.


 Please reach out to us with any questions regarding a debit card versus a credit card.


Stephen Moss is a Registered Representative offering Securities through UNITED PLANNERS FINANCIAL SERVICES, Member FINRA/SIPC.  Advisory Services are offered through Pegasus Financial Group.  Pegasus Financial Group and United Planners are not affiliated.  This is for educational purposes only.