Is it better to use a credit card or debit card? To use the ATM Debit card or Credit card, that is the question isn’t it? In today’s electronic world, many people have both an ATM bank Debit card and a credit card. So which one should you use when shopping? Here is a question asked by a nursing student:
I’m a nurse and I have the choice to get either a credit or debit card (or both). I’m curious as to which card would be best to use. Thanks!
Better to Use Credit Cards or Debit (ATM) Cards? Debit vs. Credit Cards:
So what’s the verdict? Is it better to use an ATM card when shopping, or a credit card. I would say a credit card hands down, and here is why:
- Most credit card companies offer points or reward systems. So when you buy merchandise, you are actually making a return on your purchase. ATM/Debit cards, in contrast, usually don’t offer this.
- Credit cards don’t charge interest if you pay within your grace period. This not only gives you an interest free loan, but you don’t have to pay it off until you get your bill. Debit/ATM cards, in contrast, are usually deducted from your checking/savings account within hours or days. They also may charge you fees at some locations to use an ATM debit card.
- Credit cards don’t require a pin. In most cases, a credit card doesn’t require a pin. Just slide and sign in most cases, and you’re done! ATM cards, however, often require a pin number to use. It can be difficult remembering your number, or someone standing behind you could always see it!
- Some debit card companies may hold you liable up to a certain dollar amount ($50 for example) if fraud happens. In contrast, many credit card companies offer a $0 fraud liability. So that would make credit cards once again a better choice.
Conclusion: Credit Cards Beat ATM or Debit Cards for Me Any Day
So just on those reasons alone, I ALWAYS prefer to use my credit card as opposed to my debit/atm card. I know that I have 30 days to pay it off interest free, it is easy to use, and I get points (which I redeem quite often). In fact, I just ordered another gift card from my points account, and didn’t pay a dime in interest to do it! Boo-yah!
Now of course, if you’d prefer just to pay cash instantly from your savings or checking account, then an ATM card would work fine. It’s easier than writing a check in most cases, yet the funds will be deducted in a similar way. Just be cautious as to whether or not your bank charges a fee for the ATM card.
Some may charge a fee per certain number of transactions within a month. Those costs can quickly add up.