Debit Cards vs. Credit Cards



1. You can easily take out from any ATM depending on your daily limit. You don’t have to bring cash or a checkbook around.

2. Use your debit card to purchase anything using the chip-enabled card terminal if you have enough funds.

3. On many grocery outlets or supermarket, you can also take out cash at the till while paying your groceries at the same time.

4. It is widely and readily accepted anywhere around the globe.  (Just make sure that you inform your financial institution before going away on holidays.)

5. No interest charges.


1. You can only use the card if you have enough funds in it or overdraft facility.

2. There is no grace period unlike the credit card. It uses funds directly from your checking or savings account.

3. There is minimal protection when a fraud is committed on your debit card.

4. Using your debit card to take out money on non-affiliated ATM can be very costly.




1. It is also widely and easily accepted anywhere, hence it’s very beneficial for traveling.

2. Acts as a short-term loan. The grace period varies from card suppliers anywhere from 20-30 days in which you  don’t incur any interest during this period.

3. It provides better fraud protection. Zero liability for unauthorized purchased on your card.

4. It offers extended warranty to purchases on items such as appliances or other electrical items.

5. Premium credit cards offer travel, medical, delayed or cancelled flights, lost baggage and car rental insurances if you pay the full amount upon booking your ticket and holidays.

6. You get reward points (free groceries or travel) and cashback points by just using the card.

7. It builds your credit rating. The earlier you get a credit card the sooner you can build your credit record that can lead to easy access to other credits and preferential rates if you use your card responsibly.


1. It can be difficult to get if you don’t have previous credit record, jobs and permanent address.

2. It has high interest rates and can lead you to financial trouble if you’re only paying the minimum payment each month.

3. Some credit cards have annual fee so individual research must be done before applying.

4. It can also damage your credit rating if you are delinquent and continuously missed payments on time and applied so many credit cards in a very short period.



After weighing the pros and cons of both it is an easy decision to use my credit card daily because of the advantages mentioned above and only use the debit card to take money out if the purchase requires cash.

Since I got my very first credit card, I have never paid any interest in almost 20 years! In fact, my credit cards are one of my sources of passive income as I received a check every few months by just using it regularly and paying the balance in full each month.

In addition, my credit card has even better returns than my debit card as it gives me cash back of 1.5% on all purchases whereas my checking account (debit card) pays a very minuscule amount and some are nothing. (What a joke!).

And what will I do when I received my check? I don’t get excited and run to buy groceries with it but deposit and add to my stock investments. (Note: I said investments not savings account)


Which card do you use daily? Do you use cash instead?
Let me know in the comment section below.
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