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Five Scenarios When Using a Credit Card Is Better Than Using Debit

So you probably have a few credit and debit cards floating around in your wallet or linked to your Digital Wallet (Apple Pay, Google Pay, Samsung Pay). While you know the major differences between a credit card and a debit card, when should you use each? Here are five scenarios when using a credit card is better than using debit:

1. Scenario: You’re shopping online.
Use: Credit

If you’re shopping online or are using a card to pay for a bill at a restaurant, using a credit card is your best bet for protection against fraudsters and identity thieves. While debit cards offer some consumer protection in the case that it’s lost or stolen, most credit cards offer zero liability. “Any time you’re worried about your card’s safety, using a credit card is best,” says Matt Schulz, senior industry analyst at “That’s because if a bad guy uses your debit card, he’s using real money from your real checking account,” Schulz explains. “With a credit card, the situation is different. Just make a phone call and the charge is removed, with no money ever coming out of your pocket.”

2. Scenario: You want to protect your purchases.
Use: Credit

Besides protection against fraud, credit cards also offer purchase protections and extended warranties in case an item you buy using the card gets lost, stolen, or damaged, explains Sean McQuay, a credit card expert at NerdWallet. In some cases you might get similar coverage to a warranty purchased in-store. Extended warranties vary, so check to see what kind of coverage and types of purchases your credit card covers.

3. Scenario: You want to earn rewards.
Use: Credit

Credit card rewards are an important part of any savvy shopper’s arsenal,” explains McQuay. “Every time you swipe, you have the chance to earn 1 to 6 percent in rewards, depending on your card and where you’re shopping.” Credit cards with generous reward incentives allow you to rack up points you can use to book flights and hotel rooms for travel, gift cards to your favorite stores, or to redeem for cash back. Find out what type of rewards programs are offered at the credit union.

4. Scenario: You’re traveling abroad.
Use: Credit

If your card gets lost or stolen during your trip, a credit card offers stronger fraud protection. For added security, make sure you travel with a chip-enabled card. Make sure to let your financial institution know when you’re traveling or you may get cut off from your funds due to fraud alerts.

5. Scenario: You want to build credit.
Use: Credit

Having good credit is essential to your life as a consumer and affects your ability to say, take out a car loan or get approved for a mortgage. Part of building credit is to use a credit card responsibly by paying your bills on time and staying within the ideal credit utilization ratio, which is the balance on your card compared to the limits on all your cards combined.
Depending on what the scenario is, you may find it better to use a credit card versus a debit card. No matter which card you use, it’s always a good idea to make sure you are spending responsibly and that your info is safeguarded. The credit union now offers contactless credit cards which offer even more protection & convenience, while continuing to offer both certainty regarding what you’ll pay, and a low interest rate—much lower than the national average variable APR.