I've Always Paid With A Debit Card, But People Say For $20+ A Credit Card Is Better. What's The Real Answer? – 24/7 Wall St.

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Trying to decide on a payment method for something every day can really be a challenge given that you have cash, check, credit or debit options. This argument has been raging for decades. Some believe that “cash is the king” and that we cannot be certain otherwise.

One Redditor is considering this scenario as he tries to determine whether it is better to use a credit or debit card for purchases over $20. Submitted at R/PersonalFinanceand there are also questions about whether switching to a credit card will also help you establish a good credit.

Naturally, many people struggle with this question early in life because they want to be financially safe, so I praise this redditor for being practical and research.

Redditor questions

Redditor currently uses Wells Fargo debit cards to have rarely used credit cards, but they buy them all. Ultimately, they ask if they should switch to credit cards to build credit, whether they'll ask about frequent flyer miles and more.

Of course, there is also confusion as to how much of a credit card affects your credit score. One concern that is preventing credit card usage is Redditor's understanding that some retailers, especially small retailers, can charge 2-3% of fees to cover credit costs. In contrast, debit cards do not have fees.

Also, what complicates things in the minds of Redditors is that their existing credit card balances have a balance of between $8,000 and $4,000 used by the university. Does this lead to the question of whether they should reward this first?

Just use credits

It's no surprise to learn that there are far more reasons to use your credit card with your debit card. This doesn't mean that debit cards don't have a place, but the reality is that credit cards are safer, have more benefits and allow you to build your credit.

One Redditor said, “The debit is my money, and the credit is my money from the “bank.” If something happens, which money do you think will chase? This is a bit of a brush off saying that if something happens with a debit card the bank won't help, but there's a clear truth about what's more secure about credit cards.

If you happen to be a victim of credit card fraud, according to the law, the amount you can be liable for is $50. According to this, most credit cards will quickly remove fraudulent transactions and work with law enforcement. The opposite applies to debit cards that can be on hook for everything if you do not report fraudulent behavior within 60 days of the statement being sent.

Credit cards also offer perks like cashback, which is basically “free” money from the bank. Also, debit cards are not allowed, including extended warranty protection, purchase protection, roadside assistance, frequent flyer miles, and airline status.

The bonus is that using a credit card will build a payment history and report this to the credit card office, which will affect your credit. For this reason, it is always a good idea to repay your credit card balance each month.

When is David good?

If you're struggling to pay back your credit card balance, a debit card might be a smarter option. This way you can only use what you have in your bank account. Or, if you need quick cash access, a debit card is the perfect wallet.

As the original poster suggests, avoiding sales charges is also a profit, but this generally occurs only in small businesses. Stores like Walmart, Target, Publix do not have such charges.

Ultimately, credit cards always offer more benefits and protection than debit cards, unless you're really struggling to balance your budget each month or paying too much on a regular basis.

Flywheel Publishing is affiliated with CardRatings for coverage of credit card products. Flywheel publishing and card rates may receive a fee from the card issuer.