--- title: '''Will That Be Debit or Credit?'' The Answer Is Trickier Than You Think' description: 'Welcome to Dollar Scholar, a personal finance newsletter written by a 27-year-old who’s still figuring it out: me. Every week, I talk to experts about…' authors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2020-02-04T15:30:22.000Z' modified: '2024-05-17T04:33:02.000Z' section: Banking tags: - dollar scholar word_count: 814 canonical: https://money.com/debit-vs-credit-cards-which-is-better/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![20200130_DS_27_Credit_Card](https://img.money.com/2020/01/mm_ds_27_debit-gif1-final-rev2b.gif) *Welcome to Dollar Scholar, a personal finance newsletter written by a 27-year-old who’s still figuring it out: me.* *Every week, I talk to experts about a money question I have, whether that’s “What if I don't have a 401(k)? or “How many [credit cards](https://money.com/best-credit-cards/) do I need?” As I learn, I share simple ways to improve your financial life… and post cute dog photos.* *This is (part of) the 27th issue. Check it out below, then [subscribe](https://money.com/subscribe/dollar-scholar/) to get future editions of Dollar Scholar every Wednesday.* * * * When I look back on my teenage years, I can identify several turning points in my life. A perfect example is the day I made a MySpace page. It’s laughable now, but it was a big deal to 15-year-old Julia. Being able to blast bulletins and tinker with my top 8 felt like a huge development at the time. And then there was the day I got my debit card. My mom and grandma took me to the bank next to Chili’s in my hometown, and together we set up my first checking account. As I filled out the paperwork, I felt my world change, just like it had with MySpace. I was free! I could buy whatever I wanted, whenever I wanted! So imagine my surprise when I learned a couple of months ago that there are people who never even use their debit cards. My editor is one of them — he puts nearly all of his purchases on a [credit card](https://money.com/best-credit-cards/) in order to rack up rewards points. This has made me reconsider everything. Should I ditch my debit card? Credit expert [John Ulzheimer](http://www.johnulzheimer.com/), formerly of FICO and Equifax, didn’t even have to think before answering my question. “Converting from debit to credit is a very good idea,” he says. Despite my initial enthusiasm for debit, Ulzheimer pointed out that credit has the advantage over debit in a couple of areas. Perhaps the biggest is fraud protection. This is going to get confusing, so read the next two paragraphs carefully. If my DEBIT card is stolen/used without permission, it falls under the [Electronic Fund Transfer Act](https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards). If I tell my bank before any charges are made, I won’t lose anything. If I tell them within two business days, the most I can lose is $50. If I tell them after the two-day mark but within 60 days of getting my statement, my maximum liability is $500. If I tell my bank after that 60-day point, there’s no limit to how much I can lose. 😱 But if my CREDIT card is stolen/used without permission, it falls under the Fair Credit Billing Act. If I tell the company before any charges are made, I’m not liable for anything. If I tell them afterward, the most I can lose is $50, and it probably won’t even be that. That’s because the four major card companies — [American Express](https://www.americanexpress.com/us/security-center/types-of-fraud/), [Mastercard](https://www.mastercard.us/en-us/about-mastercard/what-we-do/terms-of-use/zero-liability-terms-conditions.html), [Visa](https://usa.visa.com/pay-with-visa/visa-chip-technology-consumers/zero-liability-policy.html) and [Discover](https://www.discover.com/credit-cards/help-center/faqs/fraud.html) — all have $0 fraud liability policies. In addition to this legal mumbo jumbo, Ulzheimer told me there’s simply a big difference in the sense of urgency in both cases. “With debit cards, that’s *your* money that was stolen,” he says. “With credit cards, that was *the bank’s* money that was stolen.” Credit cards are also great for — duh — building credit, whereas a debit card doesn’t influence my score at all. And don’t even get me started on points. My inclination to use debit over credit isn’t unique. A [2018 survey](https://www.tsys.com/Assets/TSYS/downloads/rs_2018-us-consumer-payment-study.pdf) from payment services firm TSYS found that 54% of respondents prefer to pay with debit cards, while only 26% like to use their credit cards. To be fair, debit cards can be better for some people, according to Cyndie Martini, the president and CEO of [Member Access Processing](https://maprocessing.com). They limit how much I can spend by design. If I know that I have trouble paying off my credit card balance every month, I might want to opt for debit as an exercise in self-discipline. “It boils down to, do you have sound financial management principles in order to be able to do this comfortably?” Martini says. “You have to be very honest with yourself \[about\] what your lifestyle is, what your budget is, what your income allows you to do. Make sure that you are realistic about what you’re spending on a monthly basis.” Bottom line: I should chill on my debit card usage and start putting down my credit card more often. But I should take a hard look in the mirror every once in a while so I don’t overspend or miss payments. “If you’re disciplined, it’s not really even a close call between the two,” Ulzheimer adds. “The credit card wins, hands down.” ![](https://img.money.com/2019/07/newsletter_-03.png) ## **More on Money:** [The New Rules for Figuring Out How Much Home You Really Can Afford](https://money.com/how-much-to-spend-on-a-home/) [The Best Credit Cards Right Now](https://money.com/best-credit-cards/) [Best High-Yield Savings Accounts](https://money.com/best-high-yield-savings-accounts/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/debit-vs-credit-cards-which-is-better/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Banking", "item": "https://money.com/banking/" }, { "@type": "ListItem", "position": 3, "name": "Bank Accounts", "item": "https://money.com/bank-accounts/" }, { "@type": "ListItem", "position": 4, "name": "'Will That Be Debit or Credit?' 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