Debit or Credit
Which is better?

allow you to make a reservation with a debit card. If they do, they often require you to make a deposit, which freezes hundreds of dollars in your account until you’ve paid them. This freeze on your debit card can take days before it is lifted which means you will not have access to that amount of money in your bank account.

Banks charge a fee to use a debit card. This fee can be a flat-rate monthly fee or a charge every time you swipe your debit card. Some banks may allow you to make debit purchases beyond what you have in your account, but will hit you with expensive overdraft fees. Unlike credit cards which are universal, some debit cards are not compatible from one country to the next.

The biggest disadvantage of credit cards is that it is easy to spend money you don’t have. Credit card companies can be generous in raising your credit limit without your knowledge allowing you access to more loans than you may actually need or can even afford. Credit cards charge interest on revolving balances and increase your interest rates when payments are late. In addition, credit card companies often tack on other fees, such as late charges and annual membership fees to the credit card.