If you are in the market for a new card to add to your wallet or purse, it is important for your financial health to know the difference between whether to get a debit card or a credit card. Thankfully, the Equifax Finance Blog has a new article to help you determine which to apply for or request when it comes to options for paying with plastic in the new article, ”
Tips For Choosing Between Paying With Debit or Credit.”
If you want to not have to worry about paying interest and have other ways to build your credit score, a debit card is the way to go. Since debit cards draw from your own money in a bank, you aren’t borrowing and therefore aren’t building your credit score. But that also means that you aren’t being charged for borrowing, and you can’t borrow so much that you go deeply into debt. You can still overdraw, which will cause you to be hit by fines that are often hefty. Also, since funds are directly drawn from your account, there is little in the way of protection from fraud.
On the other hand, credit cards are on a billing cycle and everything on them is borrowed and there are many ways they can help or hurt your credit score. If you are a responsible borrower and can stick to regular payments and not carry too high of a balance, credit cards can be a big boost to helping your credit rating rise. In addition, credit cards often have valuable rewards programs that can be used to buy products or pay back some of your credit card balance.
To learn more about credit, as well as retirement, real estate and how to stay safe from
identity theft, check in on the Equifax Finance Blog!