With the introduction of plastic money resources, credit cards and debit cards, it has been easier to get through payment processes with a swipe of that magnetic strip or simply entering in the digits on our keyboard to make purchases online. The debit card and credit card work similarly enough, and despite the differences being very vast, many people still can’t seem to spot why a debit or credit card may be better to use than the other. Being an informed consumer is an important step in making the correct financial decisions, and knowing whether you should use debit or credit is one of the first decisions you should make.

Where are you getting your money?

The most obvious difference between debit and credit cards is the source of cash from which you are drafting money from while making purchases. A debit card uses your bank accounts as its drawing source. While withdrawing money from an ATM or fueling up your gas tank, the money taken or paid is drawn out of the savings or checking account connected with that card. When dealing with debit cards, the limit on the money you use is exactly how much you have in your bank account.
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Credit card debt is one of the worst financial situations you can manage to get yourself in. If you are sitting there, looking at multiple credit card statements and only sending just enough money to your creditors to cover the minimum payments due, you are making one of the least efficient financial choices you could ever make. By the time you end up paying off those debts with minimum payments, you’ll have acquired so much in interest that you’ll pay double, or more, of what you actually racked up on those credit cards.


Failing to pay and continuing to dig yourself deeper into a hole of credit card debt, you’ll find your credit score gradually slip. This will affect nearly every aspect of your life. With a bad credit score you’ll have a more difficult time finding a better job. You won’t be able to purchase or lease that new hybrid-electric car you want because you can’t charge your credit card with the price of gas as it is. No bank will even come close to considering you for any type of loan, and if you somehow had the thought that you could buy a new house, kiss that dream goodbye.
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If you have absolutely no credit or no credit history, you could find it pretty difficult to apply and be approved to receive a credit card. The most likely reason reason you don’t have credit is because you’ve just turn 18. At the age of 18 you are legally allowed to be a new owner of that shiny credit card you’ve always dreamed of.

Wielding a credit card at such a young age can be dangerous. Young people are usually unaware of the dangers of credit card debt, and the ease of being able to purchase nearly anything you want, instantly, without cash makes that danger much more clear. However, establishing credit at a young age is easier than doing it later in your life. On top of this, credit will help you further down the road by allowing you to take out loans, create better opportunities for you in the job market, let you purchase/lease a car, as well as eventually allowing you to purchase your very own house. Ah, the power of the credit card is a wonderful thing.
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How Many Credit Cards Should You Have?

According to statistics from loan and credit agencies, the average American holds anywhere from 5 to 10 credit cards, plus several loan payments. On average, that comes out to 13 credit accounts. That number is a bit outstanding according to credit experts. With all these credit cards and loan usages coming into play, this leaves nearly 85% of all Americans in some sort of non-mortgage related debt. Of those people, nearly 32% are in credit and loan debts of more than $10,000. Yikes!
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