Whats suits better Credit cards OR Debit Cards

Hi Aneekalam
Debit cards are backed by your own money and you can pay the amount that you already have in your bank account while making any payments with it. So it is not difficult to get a debit card because you can get one if you have a bank account. These debit cards does not contribute towards your credit history.
When you make payments with your credit card, it means that you are borrowing money from the credit card company. Credit cards play a vital role in building up a good credit profile. The more timely you are in making payments towards the cc debt, the better is your credit history and your score.

Hi Aneekalam,

In my opinion, if you are using a credit card you will have to be responsible and make timely payments. If you are not punctual, you fall into debt and that will surely mean trouble. But, if you have a good credit history you can get the loans at attractive rates of interest. Using a debit card does not create a credit history as you are using your own money to make payments.

In case of fraud a credit card can be considered safer than a debit card. Anybody who finds your debit card can just swipe it and make purchases because it does not require your Personal Identification Number. The amount is instantly deducted from your account. In case of a credit card you can always report any inaccurate charges in your credit card bill to your credit card company. They are legally bound to investigate if you send a written request within 60 days.