Debit or Credit Card?
Here’s a guide, from the consumer protection website CreditCards.com:
•When shopping online. Susan Tiffany is a director of the Credit Union National Association. She says that debit cards are linked directly to your bank account. So, if that information is hijacked, you can get cleaned out. However, credit cards have a cap on how much you’re liable for if some hacker gets your information.
•When buying big-ticket items. Credit cards offer more protection if something goes wrong with your purchase. Many credit cards increase the manufacturer’s warranty or offer other insurance at no additional cost.
•The 3rd time to choose credit over debit: When a deposit’s required. Peter Garuccio is a spokesman for the American Bankers Association. He says that hotels, car rental companies, and equipment rental firms will place a hold on your card equal to the amount of the deposit. That means if you use a debit card, you won’t have access to the money in your bank account until the hold clears. You don’t want renting a carpet shampooer to bounce your check to the electric company.
•Use a credit card when you book airplane or train tickets in advance. When you use a debit card to book future travel, the money’s taken out of your account that day. If you use a credit card, the charges won’t appear until you actually take the trip.
