Debit or Credit
Which is better?

Consumers are becoming increasingly more comfortable sharing their personal banking information by swiping their credit and debit cards in public and online.

For many, the difference between pulling out a credit card and a debit card seems small. The two cards look nearly identical, but they’re fundamentally different animals.

Credit Card
A credit card is essentially like a small instant loan offered to you by your bank through a plastic card. Swipe your card, sign the receipt and you've

just made your purchase without paying. The bank pays on your behalf and then you have typically 20 days or more to pay them back without incurring interest – your grace period. If you can’t afford to pay your balance at the end of the grace period, your credit card issuing bank will allow you to pay a fraction of the outstanding balance every month. For this privilege you will be charged interest and interest rates can interest rates depending on the type of credit card, can be as much as 20 percent.

Debit Card
Debit cards are the plastic equivalence of your bank checks. While credit cards offer you access to money you may not have, debit cards will only allow you to spend whatever cash you have in the bank. If you want to buy a $1,200 television but only have $100 in the bank, your debit card will probably get rejected. But if you put that same purchase on a credit card, as long as you haven't hit your credit limit, you'll be able to purchase your TV.

Credit cards require you to sign for your purchase, which is proof that you swiped your credit card. Debit cards usually require a secret