Which is better when using a checking card?

Question

is it better to use credit or debit? which is less expensive?

Answer 1

If you only have 10 bucks of cash on you, you wouldn't try to buy something that's $80 right?  Use your credit card like you would with cash: Make your spending limit whatever you have in your checking account, or whatever you're going to have within the next 21 days.

If you know you can pay your off completely within 21 days, then use your credit card!  

When you use a credit card, you're charged an extra "finance charge" 21 days after you make the first purchase.  This 21 day period is called a "grace period." If you pay off your bill before then, then you won't be charged.  Paying it this way gets your credit score up, which will definitely make your chances of buying a new car or a home in the future much better.

If you're constantly online, then you should really consider banking online.  When I first got my credit card, I came up with this strategy to get my credit score up without paying the extra finance charges.   Just stay consistent

Answer 2

You would need to check with your bank to see what kinds of fees they charge.  Some banks don't charge for any of the transactions but some do charge if you use your PIN.  Check with you bank to be sure.  

If they don't charge, you can use it whichever way you want, depending on the circumstances.  Some stores let you get cash back but that's only if they run it through as a debit card and you enter your PIN.  When they treat it like a credit card and you sign, you can't get cash back.

Answer 3

Debit card. You pay with money already in your bank account, so it's the same as paying cash.

If you pay with a credit card, then pay it off in full each month, you won't pay any interest, so that's also the same as cash.

If you want credit for a longer period, you will pay interest until you clear the balance.