Credit card or a Debit Card ?

Credit and debit cards typically look almost identical, with 16-digit card numbers, expiry dates and 4 digit PIN (personal identification number) codes.Debit cards allow bank customers to spend money by drawing on funds what they have deposited at the bank. Credit cards allow consumers to use bank money up to a certain limit in order to purchase items or withdraw cash.

There are many reasons it makes sense to use one type of card over the other. 

Advantage of Debit Cards

Fees. Few consumers prefer to use debit cards because there is no fee  associated to that. On other side, credit cards generally charge annual fees, over-limit fees, late-payment fees and other penalties.

Controlling spending. A debit card draws on money the user already has, eliminating the danger of racking up debt.

Advantage of Credit Cards

Rewards. Credit card users can reap cash, discounts, travel points and many other benefits.

Credit score. Credit card usages allows the consumers to build their credit score who are responsible and paying on time.

Warranties. Credit cards may also provide additional warranties or insurance for items purchased.

Liability for lost or stolen cards. Credit cards still offer much greater protection than debit cards in most cases. As long as the customer reports the loss or theft in a timely manner.

Disputing transactions. Credit card users to dispute unauthorized purchases or purchases of goods that are damaged or lost during shipping.

Car rentals. If you need to rent a car, many credit cards provide some sort of waiver for collisions. Even if you want to use a debit card, many car rental agencies require customers to provide credit card information as a backup.