Most people have at least one credit card and one debit card in their wallet. Each one has advantages and disadvantages depending on the circumstance of the situation and the amount of spending control of the user.
Credit and debit cards look very similar. All cards have a 13 to 19 digit number, expiration date and a 3 or 4 digit security code. However the functions of the cards are quite different.
A debit card allows bank customers to spend money by drawing on funds that they deposited with the bank. Credit cards allow consumers to borrow money from the card issuer up to an established limit for purchases or cash withdraw.
An advantage of debit cards is they usually have very little or no fees of any kind, unless the user spends more than they have in the account and are charged an overdraft fee. Many users of debit cards get a feeling more like using “real” money.
An advantage of credit cards are the rewards that are offered. These rewards can be in the form of cash, discounts, travel points, etc. Smart consumers who pay off their cards in full each month can profit by using the credit cards.
Additional advantage of credit cards:
The bottom line is, smart shoppers who can control their spending are probably wise to reap the benefits offered by credit cards for the majority of their purchases. Debit cards protect the frugal from fees and help less disciplined spenders stay within their means.