Credit Cards vs. Debit Cards
Credit Cards
By definition, spending with a credit card means you are spending money you don’t have – it’s a loan.
Credit card issuers also provide dispute settlement when you ordered something that wasn’t what was promised or if a merchant refuses a refund. These protections are especially important for mail order transactions or in cases of identity theft.
Debit Cards
Spending with a debit card means you’re spending your money – it comes directly from your checking account. When the money is gone, it’s gone. When used properly, spending with debit cards can be part of a solid strategy for spending within a budget and staying out of unplanned debt.
Debit Cards and "Courtesy Overdraft Protection"
Courtesy overdraft protection is a service most financial institutions offer to help consumers avoid declined debit card charges. If you do not have a credit card, courtesy overdraft protection might be useful in an emergency,
