Credit vs. Debit Cards: The Benefits of Using Both

The credit vs. debit cards debate offers a chance to explore the distinct benefits of each for cardholders. Some obvious differences exist, like how debit cards only allow you to draw upon pre-existing funds, while credit cards borrow against a line of bank-issued credit. However, when you have one of each, you can benefit by using both in the right ways. 

Debit Cards Help You Access Cash Conveniently

There are always situations we face in life where we still need cash. Whether you are spotting a friend at the gas pump or need to pay your dog sitter for an unexpected trip out of town—cash is often the best way to go.

Debit cards ensure that you have access to a quick and easy source of cash. Often, it is a great backup to a credit card if you are making a purchase but want to avoid pesky merchant fees. Debit cards can also be helpful if you want your spending on household items and bills to come from a budgeted account each month. Debit cards provide a way to allocate money toward specific purchases and are a natural barrier to overspending because you cannot borrow with them, as with a credit card. 

In addition to supporting your budget goals, debit cards are great because they don’t impact your credit score! If you are trying to get back on track from debt or consumer spending, a debit card is just the solution to keep you from getting in the red. 

Credit Cards Help Finance Larger Purchases and Establish Credit History

Credit cards, on the other hand, make larger purchases possible by issuing a line of credit. This is beneficial for unexpected expenses which arise that you aren’t prepared to pay for fully on the spot. The benefit of paying later is one of the perks of using a credit card. However, when you receive your credit card statement at the end of the month, it is advisable to pay off your credit card fully to avoid mounting interest charges on the carry-over balance.

Establishing a good credit history is done by paying off your credit card balance fully at the end of each month and being on time with your payments. Over time, late or missed payments can harm your credit score and affect your ability to borrow for things like a home, car loan, or school. It’s essential, then, to keep tabs on your credit score and how your spending habits are impacting it. 

Debit Cards Give You Freedom Without Fees 

A debit card allows you to take money out of your account directly and spend it as you need it. This is great for small purchases that are cash-only, for trips to your local farmer’s market, or for purchasing an item on a listing website like Facebook Marketplace or Craigslist. 

DEXSTA offers a reloadable debit card accepted at over 30 million VISA locations worldwide. You can withdraw cash with it at any VISA, Plus, or Interlink network ATM or make deposits to reload your balance. This is slightly different than having an account-based debit card that receives direct deposits or money transfers. 

However, just like regular debit cards, won’t pay a fee to get cash from our debit card (even our credit cards have no cash advance fees!) Cash advances from a line of credit are the most undesirable ways to get cash, making a debit card a smart addition to your wallet. 

Credit Cards Offer Opportunities to Earn Cash-Back or Rewards on Spending

Rewards programs are a distinct benefit to having a credit card in addition to a debit card. When you earn points for consumer spending, credit card programs offer a variety of loyalty features for your membership. Year-end cash back, spending credits toward a particular store, airline miles, or membership discounts are just a few. Considering your rewards is one way using a credit card can help you earn perks as you spend. 

Credit Cards Vs. Debit Cards. Why Not Both? 

Wherever you land on the credit card vs. debit card debate, there’s more flexibility with both options. Explore DEXSTA’s competitive VISA credit card offerings, including no annual, cash advance, or over-the-limit fees. Yes, really! Enjoy travel rewards, merchandise rewards, and rewards points that never expire just by being a DEXSTA member with our DEXSTA VISA Platinum Rewards card. Stop by a branch or give us a call to learn more about how easy it is to open a new debit or credit card with us!