{"id":5502,"date":"2023-02-12T21:00:01","date_gmt":"2023-02-12T21:00:01","guid":{"rendered":"https:\/\/entertainment.runfyers.com\/index.php\/2023\/02\/12\/credit-vs-debit-cards-which-is-the-smarter-choice-the-points-guy\/"},"modified":"2023-02-12T21:00:01","modified_gmt":"2023-02-12T21:00:01","slug":"credit-vs-debit-cards-which-is-the-smarter-choice-the-points-guy","status":"publish","type":"post","link":"https:\/\/entertainment.runfyers.com\/index.php\/2023\/02\/12\/credit-vs-debit-cards-which-is-the-smarter-choice-the-points-guy\/","title":{"rendered":"Credit vs. debit cards: Which is the smarter choice? – The Points Guy"},"content":{"rendered":"


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Editor\u2019s note: This is a recurring post, regularly updated with new information.<\/em><\/p>\n

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On the outside, credit cards<\/a> and debit cards look a lot alike: Both have 15-16 digits, expiration dates and security codes.<\/p>\n

But in reality, credit cards and debit cards are not the same, and there\u2019s often debate in the financial world over which type of plastic is best for the consumer. Some financial pros are firmly in the pro-debit-card (or cash) camp, but here at TPG, we believe that credit cards are a much better choice for your spending.<\/p>\n

In this guide, we\u2019ll break down how debit and credit cards work and the three reasons why we think it\u2019s better to put your debit card away and pay with a credit card instead.<\/p>\n

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The mechanics of credit and debit cards<\/h2>\n

Debit cards are tied to your bank accounts. When you use your debit card to make a charge, the funds are withdrawn right away (or within a few days) from your account. If you try to use your debit card for a purchase that costs more money than you have deposited, your bank will generally decline the transaction.<\/p>\n

Your credit card, on the other hand, works like a portable, flexible loan. You can borrow money (up to your credit limit), pay it off and borrow again. You can repeat this process repeatedly as long as your account is open and in good standing.<\/p>\n

As you use your credit card through a billing cycle<\/a>, your charges are tallied up on your monthly statement. It\u2019s up to you whether to pay off your entire balance by the due date (strongly recommended) or to make at least the minimum payment toward the amount you owe.<\/p>\n

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