Some people prefer to use a credit card in order to build their credit, while others like the convenience of using a debit card.

Which would you rather have? Credit cards offer more opportunities for building your financial profile and are less risky than carrying cash around with you all day long; but if something goes wrong on your account, it can be hard or impossible to get back what was lost. A traditional bank’s savings account offers an FDIC-insured up t0 $250k per depositor via law (that includes joint accounts).


How do credit and debit cards work?

So, did you know that debit cards and credit cards are very different? It might not seem like they’re all that different when you use them to pay for something in the store. But how do these two ways of paying work differently?

With a debit card, money is drawn directly from your checking account each time someone pays with it – so if there isn’t enough money in your bank then an overdraft fee could result!

A credit card on the other hand gives people access to borrowed funds … but make sure to always keep track of what’s coming out or else interest rates will rack up quicker than expected.

Credit cards are a way to keep your bank account and credit score healthy. They give you the option of revolving, or carrying an outstanding balance from month-to-month while making only the required minimum payments instead of paying off everything at once when they get their bill.

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With a debit card, an unauthorized purchase has already been deducted from your checking account and you may be out of luck. The bank is the only one who can protect its money with credit cards; additionally, they have excellent fraud protection policies that will get your money back for you in many cases.

The Fair Credit Billing Act (FCBA) protects your credit and finances in the event of credit card fraud. You won’t be held liable for any charges over $50, but there are some financial institutions that will cover you completely with a zero liability policy if it’s their fault!

Credit Building

Credit cards are the most common way to build credit. This is because all your activity on a card will be reported to the credit bureaus, allowing you an opportunity at building up a history of good habits like paying on time and making payments below or close to your limit. A low balance also benefits both parties as it lowers risk for creditors while still giving borrowers opportunities for revolving utilization which may help their score if they use them responsibly enough by keeping balances near or under limits set forth in agreements with lenders such as Credit One Bank.

The revolving utilization of your credit card also affects the performance in the long term. For example, if you have a high balance on one account and are paying it off monthly as opposed to having an average balance across all accounts with various balances then that can positively affect your score over time despite only being looked at for 12 months out of every 36 month period by FICO

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The revolving utilization – or how much money is owed each day – plays a major role when calculating credit scores since they look at this information from within three years (out of six total) before making their decision about whether or not to approve someone’s loan application. It isn’t just because there should be no problem managing debt payments; rather, higher levels hurt low risk borrowers.


When you need a way to pay or when it’s easier, use credit cards! There are so many advantages: they’re great for traveling (renting cars and hotels), require less upfront fees than debit cards. In the case of using your credit card abroad, there is no risk that somebody may steal money from your checking account if security codes aren’t available because people can only touch what they have – in this situation, their cash balance on hand.

Buying Power

Why would you have a debit card that limits your spending power when credit cards are available to provide more buying power? Credit cards typically offer much greater purchasing potential, since the limit is only limited by what your credit score allows.


Credit cards are not the answer if you can’t control your spending or stay within a budget- debit cards excel in this area. If used correctly, they don’t require people to get into credit card debt in order to reap their benefits; however, that higher limit and ability to carry over balances might tempt some even more than before!