Debit Card vs. Credit Card: Which is best and why?
When choosing between a debit card and a credit card, and determining which is the best you are going to first look at what it is your using it for. There are instances when places will not take credit cards they will only take debit cards, and then there are other situations the complete opposite where the company will only take a credit card. The first thing to remember for people who want to make the best financial decisions is that if you can't afford to pay cash for it, don't buy it at all.
Of course this is for items such as appliances and electronics, not cars and homes. Living by this method will easily prevent someone from going into debt over items that where unnecessary purchases. Using a debit card is best when you are pumping gas, going to the grocery store, shopping for clothes, or going out to dinner. You want to pay for as many things as you can upfront and in cash, instead of letting them sit on your credit card. People who often charge things on their credit card assume that they will have the money to pay it off when the bill comes in the mail, but that isn't always true.
Even when paying for larger things that have to put on a credit card, try putting a large amount down off of your debit card, and then putting the rest on your credit card. Credit cards have very high interest rates and even if you think that you will be able to pay it off you don't want to take the change. When you do make purchased with your credit card you want to be sure that you pay it off right away, or at least on time to save your credit score. Having debt on your credit report is going to drag down your score a little, but when you are paying it off on time, and paying more then the minimum amount it is actually going to boost your score.
The bottom line is that you want to pay for as many things as you can with your debit card, and try not to use your credit card to avoid interest charges. Putting small things or amount on your credit card and paying off the balance each month will boost your score, but sometimes the balance can get away from people and it doesn't work out as planned. When someone loses their job or other bills pop up then the credit card bill gets pushed to the side, and it can accumulate interest quickly. To avoid unnecessary debt use your debit card, when you don't have the money use your credit card.
The debit card is the best for small payments that you can easily pay in full, and the credit card should only be used as an absolute last resort. People everywhere are drowning in unsecured debt, and to avoid being one of these people try to avoid using your credit card.