--- title: When to Use Credit vs. Debit Cards description: There are times when you should use your credit card instead of your debit card. Here's how to choose which one to use. image: https://go.hfcu.org/hubfs/Untitled%20design%20-%202021-06-25T083430.333.jpg --- [![MoneyWisdom_HFCU_r2](https://go.hfcu.org/hs-fs/hubfs/MoneyWisdom_HFCU_r2.png?width=464&name=MoneyWisdom_HFCU_r2.png "MoneyWisdom_HFCU_r2")](https://go.hfcu.org/blog) Filter by Category** - [Show All](https://go.hfcu.org/blog) - [Security](https://go.hfcu.org/blog/topic/security) - [Personal Finance](https://go.hfcu.org/blog/topic/personal-finance) - [Auto](https://go.hfcu.org/blog/topic/auto) - [Business](https://go.hfcu.org/blog/topic/business) - [Credit Score](https://go.hfcu.org/blog/topic/credit-score) - [Home](https://go.hfcu.org/blog/topic/home) - [Credit Cards](https://go.hfcu.org/blog/topic/credit-cards) - [Life Changes](https://go.hfcu.org/blog/topic/life-changes) - [Insurance](https://go.hfcu.org/blog/topic/insurance) - [Investments](https://go.hfcu.org/blog/topic/investments) Filter by Category** - [Show All](https://go.hfcu.org/blog) - [Security](https://go.hfcu.org/blog/topic/security) - 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I do. I'm asked so often, I just automatically respond, "Debit." It seems easier to enter my PIN right when I swipe my card than to wait to sign at the end of the transaction. Silly, I know, but that’s just me. But here’s the thing: **There are times when using your **[credit card](https://www.hfcu.org/loans-and-credit-cards/credit-cards.html)** is definitely smarter.** First, here’s a little behind-the-scenes information that might help explain why the question is asked. Using credit to pay for your purchases costs merchants more in transaction fees that they’re required to pay to Mastercard, Visa, and other credit card companies. Some merchants pass the cost of these fees on to you in the form of higher prices. That’s why many local merchants appreciate it when you use your debit card instead of your credit card. Debit cards don’t cost the merchant as much in fees because they’re as close to using cash as you can get. So what’s the bottom line? When should you opt for credit over debit? ### Use credit when you’re: - **Shopping online**. It’s just safer and gives you more protection if something goes wrong. - **Making large purchase****s** for things like appliances or electronics. Credit cards often offer extended warranties. - **Traveling or on vacation**. You’ll often have access to discounts on rental cars or hotel rooms, and you may earn frequent flyer miles depending on the card you use. These can be attractive perks on the list of things to look for in a credit card. Just make sure to have your overseas purchases charged in local currency; [read why here](https://go.hfcu.org/blog/why-you-should-pay-in-local-currency-when-traveling-abroad).  - **Making recurring payments.** Things like a gym membership or your cable bill should go on a credit card. It’s easy to forget about these payments so you don’t want them to hit your checking account when your funds are low. - **Renting a car**. The card may offer rental [car insurance](https://go.hfcu.org/blog/7-ways-to-save-on-car-insurance), yet another thing to look for in a credit card. - **In an emergency situation**. Car or home repairs or unexpected but necessary travel are difficult to budget for. A credit card can be a lifesaver in these situations. - **Trying to build a credit history**. You cannot do it with a debit card. Check out this helpful article on how to [rebuild credit.](https://go.hfcu.org/blog/bid/185397/Four-steps-to-help-rebuild-credit-using-your-credit-card) ### Use debit when you're: - **On a tight budget** and trying to keep a close eye on your expenses. - **Getting cash back** at a merchant. - **In a foreign country and need cash from an ATM. **The exchange rates are better this way! Credit cards are great when used responsibly and mindfully, and credit card benefits can be a great perk. The key is to make sure you pay off your bill each month so you don’t accrue large interest payments that would negate the value of the benefits. Get smart now and [make a conscious effort not to spend mindlessly](https://go.hfcu.org/blog/how-to-go-from-spendthrift-to-super-saver). Be aware of what you’re buying, how much it costs, and how you’re paying for it. It's the best way to ensure your financial health.   *Want to know what to look for when you're comparing credit card offers? Download our free guide to choosing a credit card [here](https://go.hfcu.org/cc).* [![The Ultimate Guide to Choosing a Credit Card](https://no-cache.hubspot.com/cta/default/118438/b3b03657-f9b1-40e8-a2f3-4b9d39ee0ccd.png)](https://cta-redirect.hubspot.com/cta/redirect/118438/b3b03657-f9b1-40e8-a2f3-4b9d39ee0ccd) *Others are reading:* - [The Difference Between a Soft and a Hard Credit Inquiry](https://go.hfcu.org/blog/credit-know-how-soft-vs.-hard-inquiries) - [How Long Does It Take to Process a Home Equity Loan?](https://go.hfcu.org/blog/bid/145826/home-equity-faqs-how-long-will-it-take-to-process-the-loan) - [6 Common Credit Report Misunderstandings](https://go.hfcu.org/blog/6-common-credit-report-misunderstandings) - [The 2 Factors That Make Up 65% of Your FICO Score](https://go.hfcu.org/blog/credit-score-factors) - [Here's How to Tell If You Have Too Much Debt](https://go.hfcu.org/blog/do-you-have-too-much-debt) ** [Credit Cards](https://go.hfcu.org/blog/topic/credit-cards), [Credit Score](https://go.hfcu.org/blog/topic/credit-score), [Checking](https://go.hfcu.org/blog/topic/checking), [Debit Cards](https://go.hfcu.org/blog/topic/debit-cards) [** 7 Inexpensive Ways to Make Your Home More Attractive to Buyers ](https://go.hfcu.org/blog/7-inexpensive-ways-to-make-your-home-more-attractive-to-buyers) [** The Pros and Cons of Owning Vacation Rental Property ](https://go.hfcu.org/blog/the-pros-and-cons-of-owning-vacation-rental-property) ### About Author ![Default Author Image](https://cdn2.hubspot.net/hubfs/476360/Blog%20Template/Images/default-author-thumbnail.jpg) MoneyWisdom Newsletter Related Posts [![The Benefits of Setting Up Direct Deposits](https://go.hfcu.org/hubfs/young%20woman%20paying%20bills%20on%20couch-1.png) The Benefits of Setting Up Direct Deposits ](https://go.hfcu.org/blog/the-benefits-of-setting-up-direct-deposits) [![Traveling this summer? 9 credit card tips to know](https://go.hfcu.org/hubfs/two%20women%20at%20cafe%20on%20vacation.png) Traveling this summer? 9 credit card tips to know ](https://go.hfcu.org/blog/traveling-this-summer-9-credit-card-tips-to-know) [![What You Need to Know About Buy Now, Pay Later Financing](https://go.hfcu.org/hubfs/buy%20now%20pay%20later%20in%20store.png) What You Need to Know About Buy Now, Pay Later Financing ](https://go.hfcu.org/blog/what-you-need-to-know-about-buy-now-pay-later-financing) ** - [**](http://www.facebook.com/share.php?u=https://go.hfcu.org/blog/credit-or-debit/) - [**](https://X.com/share?url=https://go.hfcu.org/blog/credit-or-debit/) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https://go.hfcu.org/blog/credit-or-debit/&summary=&source=CeBIT) ## You are Leaving Hanscom Federal Credit Union #### **Please read the following before proceeding to:** The website you are about to visit is solely the responsibility of the merchant or other party providing the site. 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The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. 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Moreover, Hanscom Federal Credit Union's privacy policies do not apply to any of the linked websites within this blog. Please consult the privacy disclosures on those linked sites for further information. ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "MoneyWisdom Newsletter" }, "dateModified" : "September 23, 2021, 6:38:40 PM", "datePublished" : "2021-06-28 12:00:00", "description" : "There are times when you should use your credit card instead of your debit card. Here's how to choose which one to use.", "headline" : "When to Use Credit vs. Debit Cards", "image" : { "@type" : "ImageObject", "url" : "https://f.hubspotusercontent30.net/hubfs/118438/Untitled%20design%20-%202021-06-25T083430.333.jpg" }, "mainEntityOfPage" : { "@id" : "https://go.hfcu.org/blog/credit-or-debit", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://cdn2.hubspot.net/hubfs/118438/Logo%202.jpg" }, "name" : "Hanscom Federal Credit Union" } } ```