To first decide on whether to use a credit or a debit card one has to understand the functions of both the cards.

Which is better a credit card or a debit card for payment?

It is obvious that if you are able to pay the credit card payments on time after the grace period of 45 days, credit card is a much better option. At least, if the amount of purchase is sizeable you are not losing interest, which you tend to lose if money is debited from your account when you use the debit card.

But, you stand to gain only when you settle the entire credit card amount every month.

The other reason to use the credit card is that you tend to get more reward points on a credit card than a debit card. These means you can earn reward points, which can be redeemed at a later stage.

Debit cards do have reward points, but not all. They are also not too rewarding.

But, you should adopt discipline when using your credit card. For example, a credit card may lead to unwanted spending which you may not want.

This is one of the biggest worries on a credit card, particularly with the advent of online shopping. Do exercise some caution when using your credit card.

On the other hand if you pick the right credit card you stand to gain tremendously. For example, of you use an air miles related credit card and are a frequent flyer, you stand to gain heavily in terms of points, you stand to gain tremendously.

Also, in case of emergency the credit card could be more useful, as you may not have money in your bank account to use your debit card.

Overall, one would prefer a credit card, provided one is comfortable with settling the entire amount every month.

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