| Home | Mortgage Loans | Debt Consolidation | Credit Cards | Debit Cards | Credit Card With Bad Credit | Loan Modification| Debit Cards Are they right for you? Enter your search terms Submit search form   Web OneCreditCenter Debit cards may look like credit cards or ATM cards but they actually operate like cash or a personal check. Debit cards are fundamentally different from credit cards in that you make a debit card purchase by “paying now,” whereas, a credit card purchase allows you to “pay later.” When you use a debit card, your money instantly gets deducted from your account. When you use a credit card, you are using credit or borrowing money so you can pay it back later. Advantages of using a debit card: Getting a debit card is generally easier than getting a credit card. Debit cards can be easier to use than credit cards. For example, many merchants do not require you to show identification when using a debit card to make a purchase. It may be more convenient to carry a debit card instead of cash or a checkbook. Debit cards are becoming more widely accepted which reduces your dependence on traveler’s checks when you are away from home. Compared to checks, debit cards may be more readily accepted by merchants in other states or countries. Debit cards may prevent you from overspending because you can typically only spend as much as you currently have in your account. Disadvantages of using a debit card: Debit cards do not have a payment grace period, so your account is debited instantly for your purchases. In case of a billing discrepancy, defective products or other errors, it is easier to dispute such matters when purchases have been made with a credit card. If you are able to pay your monthly credit card statements on time, you may be better off taking advantage of the rewards and cash back polices offered by these credit cards. Using a debit card can be a great way to track and maintain control over your spending without increasing your credit card debt at high interest rates. Take time to ask a few questions while at your bank to understand how their debit card services work and consider using the debit card as a tool to manage your finances wisely. Want to see our newest articles about credit? Subscribe to our email updates. You may also be interested in Credit Cards, Credit Card With Bad Credit Calculators | Contact Us | Glossary | Resource Directory | Questions | Suggestions | Link To Us | Privacy Policy DISCLAIMER: The information on this website is for informational purposes only and is not to be considered a substitute for professional financial advice.