When it comes to paying with plastic,  you have two options: debit or credit? Each has its advantages, and most people heavily use one type over the other. If you're new to credit cards or are considering becoming more of a debit card user, look to this blog post to help guide you through that decision making process.

There are several differences between debit and credit cards, but the most fundamental difference is where the funds initially come out to pay for the goods you've purchased. When you buy something using a debit card, that money is coming directly out of your checking account. When you make a purchase with a credit card; however, you are borrowing money upfront with the credit amount you have available to you with the promise to pay it back to the company that is providing the upfront costs for your purchase.
 
One of the reasons a lot of people are drawn to credit cards are for the added perks that come along with it. For instance, with Sikorsky Credit Union VISA Platinum credit card, you can currently gets perks like having no annual fee for use of the credit card, enjoy VISA’s Zero Liability Policy, get automatic auto rental insurance on most cars and travel emergency assistance, and have 25-day grace period on new purchases when you pay your previous balance in full. These are just a few of this credit card has to offer. (For more information about this credit card and our other credit card options, please click here.) Another reason that people like credit cards is that it can help them improve their credit score by using the credit cards responsibly.
 
Most debit cards linked to checking accounts don't have perks; however, that's not always the case. Our Kasasa Free Checking accounts with a VISA debit card allows you to earn rewards like a high annual percentage yield or cash back. The appeal with debit cards in general lies in the fact that you only have the money currently in your account to spend, so you won't necessarily have to worry about spending money that you don't actually have. Debit cards, in general, are a great place to start for people first learning about spending and developing good money habits.
 
While we talked about the benefits of both debit cards and credit cards and some of the perks that come with both forms of payment, we need to talk about some of the drawbacks too. The disadvantages to each account may not necessarily be seen as a drawback to you, but it's essential to be aware of.
 
The main drawbacks to credit cards are that it can be easy to borrow and spend more than you can afford, and you can get into debt if you're not consistently paying down the balance (or paying in full) each month. It's a big responsibility having a credit card, but if you can handle it – it's a great way to take advantage of some of the benefits listed above. When it comes to debit cards, the main drawbacks are that they aren't as secure, don't have the same significant protections that credit cards have, and you can overdraft and pay a fee if you're not aware of how much you're spending.
 
Both payment types are beneficial and more convenient than only using cash. Many people choose to use both types of cards depending on what they’re currently purchasing. Take a look at our VISA Credit Card options and our Kasasa Free Checking Accounts to see what perks you can get from using these accounts.
 
Sources:
Adamczyk, A. (2019). The Pros and Cons of Credit vs. Debit Cards. [online] Twocents.lifehacker.com. Available at: https://twocents.lifehacker.com/pros-and-cons-of-using-debit-vs-credit-cards-1821128501 [Accessed 21 Jun. 2019].

Ganotis, J. (2019). Credit Card vs. Debit Card: Why You Should Choose One Over the Other. [online] Credit Card Insider. Available at: https://www.creditcardinsider.com/learn/debit-cards-vs-credit-cards/ [Accessed 21 Jun. 2019].