When should I use my credit card vs debit card?
William Jenkins
Updated on February 02, 2026
If you want to avoid debt or you don’t like paying monthly bills, use your debit card. If you want to earn rewards for your everyday spending, use a credit card that allows you to do that.
When would you want to use a debit card?
Debit or Credit: Which Should You Get?
| Get a Debit Card If… | Get a Credit Card If… |
|---|---|
| You want to avoid debt. | You need to finance a purchase or transfer a balance. |
| You need to make small-dollar purchases from merchants that will not accept credit for such transactions. | You want to earn rewards on everyday spending. |
What is the main difference between a debit card and credit card?
Debit cards allow you to spend money by drawing on funds you have deposited at the bank. Credit cards allow you to borrow money from the card issuer up to a certain limit in order to purchase items or withdraw cash. You probably have at least one credit card and one debit card in your wallet.
Why do I use a credit card instead of a debit card?
Some reasons why you might chose to spend on your credit card than your debit card include: To spread the cost – If you need to make a major purchase, such as a new washing machine or a holiday, you might have enough money to pay up front. By using a credit card, you can buy now and pay later, spreading the cost.
When do I pay for something with my debit card?
When I pay for something with my debit card the card reader usually gives me a choice between “Credit” and “Debit”. I usually choose debit because it’s a debit card, not a credit card. My question is which should I choose? And what’s the difference between the two?
When is it safe to use a debit card?
In this episode, you’ll learn 6 risky situations when you should never use a debit card. I’ll review your liability and consumer rights for using debit and credit cards so you know the right way to use each one to stay safe..
Can a debit card be used as an ATM?
You might, however, face overdraft fees if you try to spend more money than is in your account. Debit cards also work as ATM cards. You can use them to take cash directly out of your bank account. How Do Credit Cards Work?
