Debit or credit?
Debit cards have been around since about the 70s, and credit cards perhaps even longer. Their popularity and usefulness has undoubtedly increased exponentially since then though, and so has the divide between those who swear by either.
No matter which side you stand on, these two financial pioneers have almost single-handedly come together to crowd out cash lovers all together, and collectively tend to make up over 50% of purchases made.
So, which is better?
- Consider responsibility first: Look, both are great, but credit cards are much easier to abuse, so debit cards take this one. If you trust yourself to not overspend money that isn’t yours, credit cards can be a big asset to you and your credit score if used responsibly.
- Security: Credit cards have this advantage over debit. They serve as a border between your personal money and the transaction and are much less stressful in the event of a stolen card or identity theft.
- Benefits: Credit cards win again here, by offering benefits ranging from cashback to even phone insurance, it’s clear that banks are willing to play ball just to get you to borrow money. (Hint: just pay it off before interest accrues.)