Credit and Debt Papers on Desk being signed by person

How To Avoid Get Hurt Financially – Debit vs. Credit Cards

Debit vs. Credit – Which Card Can Hurt You Financially?

Credit and debit cards are the most popular forms of payment today, but which one should you use? We all know that credit cards can be dangerous if not used properly; however, many people don’t realize how much damage it can do to their wallets if they use their debit card incorrectly. Let’s take a look at the pros and cons of both and which card will help you save money and avoid getting hurt financially.

Credit and Debt Papers on Desk being signed by person

What is a credit card?

People use credit cards in many different ways, depending on their specific financial situation. If you are using credit to make purchases that you can’t currently afford, then you may want to rethink your strategy and consider a debit card instead of a credit card.

Alternatively, if you would like to build up your credit or just get into some good spending habits, then it may be worth having both a debit and a credit card available to you at all times. Debit cards let you spend money right away, but don’t allow for cash back rewards or interest-free financing like some credit cards do.

Using them responsibly will help improve your financial health in time by giving you more spending power down the road when applying for loans or investing in other projects

What is a debit card?

When you use a debit card, your transaction is processed through an electronic network that links directly to your bank account.

Any time you use your card, it subtracts funds from your account immediately. Purchases are deducted from your balance immediately, while cash withdrawals incur overdraft fees or other penalties based on your bank’s policies.

For example, if you make a purchase for $10 and only have $5 in your checking account, even though it’s technically cash, you must pay another way to cover the difference because using a debit card automatically deducts money from that account.

How does credit work

In summary, when you use a credit card to make a purchase, you are spending borrowed money. When your card issuer sends your bill each month, it includes what’s called a finance charge or interest for borrowing its money.

If you pay off your balance in full every month before paying your bill, you won’t have to pay any interest on purchases made with that card—just on cash advances from an ATM or over-the-limit transactions that have been approved by your bank or credit union.

What are the Pros and Cons of a Debit Card

A debit card is linked to your bank account directly and allows you to spend your funds without needing a credit check.

However, if you don’t pay attention and overspend, there’s no line of credit for your finance. If things go south with your finances and there’s not enough money in the account to cover expenses, you can lose money quickly that might be better spent paying off debts or trying to rebuild and keep on running.

Also, you may want to avoid certain types of fraudulent purchases which aren’t covered by a debit card as easily as they are by a credit card (or cash).

What are The Pros and Cons of a Credit Card

While a credit card can be a good thing to have, it should only be used as a backup, or in an emergency. A credit card should never be used for things that you have enough money for because you could end up paying high-interest rates and other charges on your balance due.

This could eventually lead to bankruptcy if you’re not careful! The cost of items should always match up with your income level before using a credit card.

If you use your credit card responsibly though, there are lots of pros to having one: greater purchasing power, extended payment options, and extra consumer protection from unauthorized purchases and damages/losses from stolen cards.

When should I use credit cards rather than debit cards?

One reason many consumers prefer credit cards over debit cards is that, by law, creditors cannot report delinquent payments on your credit report until after 60 days.

So if you tend to spend more than you can afford on your card, forgoing plastic may help stop you from creating serious debt problems down the road.

Just remember that you’re still responsible for making sure there’s enough money in your account to cover each purchase—which can be difficult if you don’t receive an alert when your card is used—so only use cash if you really know how much money is coming in and going out of your bank account.

What are some things you should do to keep your credit score up

A credit score is a numerical representation of your creditworthiness based on information in your credit report, such as how much debt you have and whether you’ve paid your bills on time.

A high score generally indicates that you’re likely to pay back creditors, while a low score can make it difficult to get approved for loans and, sometimes, even open a checking account or rent an apartment. Here are some tips to help protect and nurture your score

How to keep your Credit Score Up

The average credit score in America is 695, according to Experian’s State of Credit Report, with an average debt-to-income ratio of 62%. The higher your credit score is above 700, which represents good credit, and below 620—which can be considered bad credit—the better chance you have at getting approved for a home or auto loan. Keeping your debts low compared to your income and making all payments on time can help raise your credit score.

For some people, debt is unavoidable—student loans, mortgages, car payments… But it’s important to keep in mind that credit card debt can have consequences if you’re not careful—such as late fees or an interest rate hike that makes it more difficult to pay off your balance.

One of the best ways to help control your debt is to avoid carrying a balance from month to month—and paying off your credit card in full each month can help you do just that! If you make sure to always pay off your card on time and in full, you’ll help prevent yourself from incurring any added costs or damaging your credit score


In conclusion, it’s obvious that there are both pros and cons to using a debit card or credit card. In order to understand which will benefit you most, it’s important to assess your personal financial situation and spending habits so you can decide which one is right for you! What will hurt you financially is not being in control of your spending money. Get in control by deciding if a credit card or debit card is best for your situation! Remember, depending on how you use them they are assets or liability.

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