Credit cards and debit cards are similar in a lot of ways. Both of these cards have 16 digits and have a security number at the back. Many people prefer to use their debit card instead of their debit card. However, there are many benefits that can be reaped from using a credit card.
More Protection
You will have more protection if you use a credit card. You be protected from fraudulent transactions if your credit card is lost or stolen. You have up to 60 days to report fraudulent transactions on your credit card.
You do have some protection if a fraudulent transaction is made using your debit card. However, you only have two days to report the transaction. You may not be able to use the funds while the bank investigate the transaction.
Your credit card also comes with price protection, extended warranties and purchase protection.
Credit-Building Potential
You cannot build your credit with a debit card. However, if you consistently make on-time payments on your credit card, then you will be able to build your credit. Your credit card company can report to all three of the major credit bureaus. Not only do you want to pay your credit card bill on time, but you will also need to keep the balance low.
Rewards-Earning Potential
You will be able to earn rewards if you use your credit card. You can redeem your points and use them for things like travel, movie tickets and restaurants. You can miss out on these rewards if you only use a debit card.
If you use your credit card responsibly, then it can be a much better choice than a debit card. Keep in mind that using a debit card won’t necessarily stop you from overspending. However, you can avoid overspending with a credit card if you keep track of your purchases.
Source: https://thepointsguy.com/news/why-credit-card-smarter-choice-than-debit-card/
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