Although the advantages of paying with a credit card can far outweigh those of many debit cards, for some it’s still better to use a debit card. How do you know whether you should be using a credit card or a debit card?
Don’t use a credit card IF:
You can’t or don’t pay your credit card balance in full and on time, every time.
If you find yourself using credit without paying it off before interest charges accrue, you’ll need to stick with cash or a debit card to avoid paying interest charges and/or late fees.
You tend to spend more than you earn … or more than you can afford.
Paying with a debit card limits you to money you’ve already earned. There’s no opportunity to spend the money you’ll earn next week, or next month, or next year. That’s what credit is, money you plan to earn in the future but that you actually spend now.
You have a credit card with a very low limit but STILL exceed the limit.
The fees for exceeding your credit limit are costly, and exceeding them can also put a large dent in your credit score since 30 percent of your credit score comes from the amounts you owe.
