A credit card is a revolving line of credit. When you use a credit card, you're borrowing money from the card issuer and must pay it back later. The card issuer can charge you interest, although credit cards typically have a grace period during which you can pay off your balance without having to pay interest. You may not be able to withdraw cash with a credit card, and even if you can, it's rarely a good idea. Credit card cash advances have extra fees and high interest rates.
With a debit card, you're spending your own money. Since you're not borrowing anything, there's no interest and no risk of getting into debt. However, debit cards are also lacking some of the benefits that credit cards offer. You can't build credit using a debit card, like you can with a credit card. Debit cards also don't have the kind of rewards and bonus opportunities available with many credit cards. But for those who struggle to manage credit without going into debt, a debit card is often the safer option.
How to use a debit card
Since your debit card is linked to your bank account, it's important to keep track of your balance. A mobile banking app is an easy way to do this and prevent declined transactions or overdrafts.
For security, never share your PIN with anyone. If your debit card is lost or stolen, report it to your bank right away. Your bank can then cancel the card and send you a replacement. Reporting a lost debit card promptly also limits your liability for debit card fraud.
When you need to withdraw cash, try to do it at an ATM that's in your bank's network. In-network ATM withdrawals usually don't have any additional fees. If you use an out-of-network ATM, you could be charged ATM fees. Check your bank's website or mobile banking app to find in-network ATM options.
