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Why is it better to use a credit card than a debit card?

Credit Card vs Debit Card

While credit cards and debit cards may look the same on the outside, there are many differences between the two that could have a big impact on your bank account. Though there are some benefits to using your debit card in certain situations, today we’ll be covering the times it’s better to use your credit card over your debit card.

The biggest advantage debit cards have over credit is that its easier to control your spending. Debit cards use money you already have, while credit cards are like short-term loans that are expected to be paid off quickly. However, if managed responsibly, there are plenty of benefits to using your credit card over debit.

Paying online with credit card. Concept of paying on the net.Rewards

Many credit card companies offer rewards for their users who spend money with them. This includes cash-back options, discounts, travel points and may other perks. By maintaining your credit card and paying it off each month, you can gain serious benefits by running your monthly purchases and bills through your credit card.

Credit Scores

Your credit card use is reflected on your credit report and through your credit score. Making timely payments and keeping a low credit line can help you raise your score over time, which can help your when it comes time to get a loan for a car, home or other investment.

[Read more: Reasons to build your credit]

Disputing Transactions

Credit card users are able to dispute unauthorized purchases, or purchases of goods that are damaged or lost during shipping. Debit card users aren’t able reverse transactions in these instances unless the merchant allows it. What’s more, credit cards offer more protection for owners should their cards be lost or stolen.

If you have any questions about your credit score, or are interested in getting a loan for a vehicle, contact us here at Broadway Auto Credit in Green Bay for more information.