Debit card vs. Credit card
Each have their place, each have useful roles, the difference being how they are used or abused.
Pros and Cons of a Debit Card
Cons:
There is no running balance so you must calculate your expenditures throughout a shopping trip or travel. The embarrassment of being told that your last purchase, is not approved due to over spending. The old myth of not spending money that is not in your hand because the debit card is easily handed over as quickly as money. Not all places except the debit card.
Keep in mind that most banks only allow so many debits per month and extras are done with added costs, so if this is the route you plan to go, make sure your bank plan matches your purchasing habits. If your card is lost or stolen many banks do not have a replacement value like credit cardholders get. Keep in mind that when using your debit card in an AMT machine that is not one owned by your personal bank, you will incur a double cost/fee. One to the host bank machine and one for your own bank, making small withdrawals costly.
Pros:
You need not carry large amounts of money. There is no need to visit bank machines either in most stores, restaurants or accommodations. Checkbooks are all but obsolete with the use of debit cards, when paying bills, or shopping. Which in turn avoid USF charges, since a purchase will be unapproved if the funds are not available.
Debit charges are backed up with reference numbers on your receipts(it’s why to write this number down for future reference). When dining, tips(gratuities) can be added to the total much like you would on a credit card. A sale item is still a sale item with the use of a debit card.
Pros and Cons of a Credit Card
Cons:
First and foremost would have to be the desire to shop till you drop without having a proper hold on the shopping reigns. Second would be the high interest rates that will fall on the unpaid portion of you bill. Paying only the minimum payment each month will give you a free ride to credit-card-hell.
People who hold more than one credit card can easily becoming a player in the who-pays-who game(taking the Visa card to pay the MasterCard and so on). Many feel that rush of handing over that powerful little piece of plastic, yet feel helpless when reaching the limit without hopes of reducing the total, on the monthly minimum payments. Keep in mind a sale is not a sale when your monthly charges are not paid on time. You now have to add in the interest of the card onto the cost of the item.
Pros:
Credit cards had a favorable place when traveling beyond your own country. such major credit cards are known universally. These cards have good replacement value when cards are lost or stolen. When traveling and making advanced reservations over the computer or telephone, these cards make it a quick and painless venture(at least till the bill comes in the mail).
I recall going to a fancy resort and wanted to pay for everything in cash. We were asked for extensive ID. yet were told it would not have been necessary when paying for the room by credit card. The reason being, damages to the rooms can be taken off your card but paying cash can leave the hotel footing the damage costs. Purchasing over the computer or phone comes quick and easy when toting a piece of plastic as well. When traveling on a business trip(with the idea of being reimbursed) credit cards do come in handy.
Rather than giving you the answer, as to which is better, I think weighing out the pros and cons will allow each reader to decide which best suits their circumstances. Myself, I prefer the wonderful use of the debit card(well at least till the money runs out).